The second quarter of 2023 shows incredible promise for prospective homebuyers. Here’s why:

DON’T BE FOOLED BY THE NOISE – HOME PRICES AND STOCKS HAVE LIKELY BOTTOMED. Current headlines are awash covering rising mortgage rates, high inflation, and political turmoil. But guess what? Investors and economists have already factored in these uncertainties, and there are signs of a strong rebound in our historically “first in – first out” Puget Sound economy. The window of opportunity is here, don’t miss it. The housing market is rebounding faster than the media can catch up. But when the market rebound makes a headline, prepare for FOMO.

1. TURN THE TABLES ON HIGHER MORTGAGE RATES. Yes, fewer buyers may be in the game and it’s harder to qualify, but that’s not a bad thing if you’re a savvy buyer working with a creative agent. Think of it this way: a slightly lower strike price on your dream home is a permanent gain, while a higher mortgage interest rate is likely a temporary strain. Most pundits predict rates will start falling soon, offering you a chance to refinance and relock for the long term. The closing price is more important that the starting mortgage rate.

1. GET AHEAD OF NEGOTIATIONS – EAGER SELLERS MUST MARK TO MARKET. With recent comparable sales showing that prices are flattening, and homes are staying on the market longer (for now), eager sellers need to mark to market to attract buyers. Well-priced and well-presented homes coming to market with a strong value proposition remain highly liquid. Now considering the recent news of more layoffs with the tech titans, would-be sellers are pricing sharper to be preferred and selected. Some sellers are also disappointed by market values, so they are reverting to rent their homes, which reduced supply and creates a ghost inventory that will return at higher prices.

1. SUPPLY SQUEEZE: NEW CONSTRUCTION IS HARD TO COME BY. Sure, spring usually brings more resale listings and developers typically rally, but don’t expect a flood of new homes to hit the market in 2023. Developers are still facing a perfect storm of high land and financing costs, inflation with building costs, supply chain issues, and cautious buyers with market turbulence and financing premiums. That means fewer groundbreaking projects of recent and even fewer choices for buyers, so if new construction is a requirement your timing couldn’t be better. The facts are developers of existing inventory are eager to move homes off their balance sheet and they are in no rush to break ground.

1. FEWER BUYERS MEAN LESS COMPETITION AND MORE NEGOTIATION LEVERAGE. Don’t let the negative headlines scare you away from the housing market – those will turn rosy once the spring sales surge registers. Yes, home prices and volumes may be down a bit from last year, and there are global events and political distractions to worry about. But smart buyers are already seizing the opportunity and quietly driving a surge of sales with less competition, so there’s less upward pressure with multiple offers and more confidence to negotiate, especially for those that may need to sell a home to buy a home (contingent home purchase).

The editor provides information based upon sources deemed reliable but cannot be guaranteed. The reader is encouraged to perform independent due diligence before relying on data or findings contained therein. E&OE.