LET’S TALK REAL ESTATE

By Mike Ryan (Designated Broker)

Greetings Leisure World Residents from your Community-Owned Real Estate Brokerage, ReMax Classic. The only ReMax franchise that contributes directly back to Leisure World Community Association through our real estate sales commissions.

Happy New Year! What will 2023 bring to the real estate market? I’ve read that it will continue to be a balanced market with no advantage for the seller and the buyer may be in the role of negotiating a better price or concessions from sellers to move forward with the transaction. Days on market will continue to be around 90 days and interest rates will hover above 6%.

As of this writing, there are currently 47 Manors active and available for sale in Leisure World. I’m noticing MLS is experiencing price reductions on listings. I also have noticed the lack of walk-in traffic looking to purchase.

We can never predict the real estate market, but we can look at reports for clues on availability and pricing in desired areas such as Leisure World. Your ReMax Classic Realtors are highly experienced, professional, and diligent in all real estate matters.

As your trusted Brokerage, if you are thinking about selling your home, please don’t give away your equity. There are many cash buyers, and their offer may seem terrific but call ReMax Classic to get a second opinion before proceeding.

Market “Break Downs” with Mike!

QWhat is the real estate forecast for 2023? Is the market still correcting or is it leaning towards a buyer’s market?

AEarly reporting shows a decline in real estate sales through 2023, up to 40% less volume. REMAX Classic had 197 sales January 1 through December 31, 2021. This year January 1st through November 30, 2022, we’ve experienced 115 sales which equates to a 42% decline in sales. The reports also show a big decline in institutional buyers, institutional buyers are companies like Offer Pad and Open Door. These companies are losing money because they purchased at a higher price and sold at a lower price.

QHow does the rise in interest rates affect me as a buyer or as a homeowner?

AFor those 1st time home buyers and the new to the market buyers they are experiencing sticker shock because the interest rate remained so low for such a long time. Interest rates affects the purchase power, but I’ve seen loans that the borrower is paying down the points.

QWells Fargo has predicted a 5.5% decline in home prices in 2023, how should potential sellers prepare for this new market?

AIt will be crucial for sellers thinking about Selling to hire the most experienced agents such as REMAX Classic agents. Communicating current market conditions, having an accurate Competitive Market Analysis, and priced appropriately are the keys to a successful real estate transaction. Another factor to success is negotiations in the purchase contract. REMAX Classic agents are highly experienced and can help you in all your real estate needs.

Are you interested in gaining more insight about the current market? Please send your questions to Leisure World’s top broker, MIKE RYAN at mryan@lwca.com.