Malibu Real Estate Market Forecast 2023

It’s common for people to have questions about the current state of the housing market as they consider buying or selling Malibu real estate. These questions can be difficult to answer when you aren’t deeply familiar with what is happening in the market on a local and national level. It’s important to understand what the market is doing and what direction it could be headed in if you’re considering making a move in 2023. This article will provide answers to the most commonly asked questions for the Malibu real estate market. If you can’t find the information you’re looking for here, reach out to Barry Roth for assistance.

Right now, the national market is headed for a slight recession. This comes as a bit of a surprise after multiple years of vigorous market activity. Home prices rose exponentially during 2020 and 2021. Buyers hit the market in droves when interest rates dropped to historically low levels. They couldn’t pass up the chance to buy a home with a lower monthly payment. This enabled sellers to charge higher home prices while still fielding multiple offers and witnessing frequent bidding wars. Things have changed, and buyer activity is no longer as intense as it was only a few months ago. Interest rates now sit closer to seven percent, which has cooled off much of the activity in the national market.

Home prices in Malibu have dropped sharply over the past few months.  Inflation is a significant issue, as many families are already struggling to keep up with the rising cost of living in Malibu. Fewer homes are going under contract each month, and properties spend more time on the market than they typically do. Most homes will sell for a final price below asking after sitting for multiple months on the market. Some homes receive higher demand and sell for a final price closer to asking. These homes are more likely to go under contract within one to two months of listing.

Hopefully. Several experts think that interest rates might drop sometime during 2023. The Federal Reserve has indicated a desire to bring rates down, recognizing that such a change benefits everyone involved. However, interest rates likely won’t drop until inflation gets under control, and it’s difficult to know when that could happen. Some buyers may consider waiting to shop for homes until they see interest rates falling, but this isn’t the best idea. In addition to not knowing how long you may have to wait, there’s a good chance it doesn’t do you any good. Prices will likely rise again once interest rates come down as more buyers hit the market to begin shopping for homes.

The current outlook might look bleak, but there are still reasons to be optimistic about the market's short-term and long-term future. Most industry leaders don’t anticipate a significant recession in the coming year. They point to the mortgage delinquency rate as a critical point of evidence about the market's overall health. Usually, a high mortgage delinquency rate implies a greater state of concern about the market. Right now, mortgage delinquency rates are at their lowest point of any time over the past 25 years. This indicates that the market is well-positioned to withstand a slight recession and rebound quickly.

Home prices usually trend upwards during the summer and take a step back in the fall and winter. Buyers are more motivated to shop for homes in April, May, and June. Sellers can sometimes make thousands of dollars more on their homes when listing during these times. There are a few reasons why these months are more profitable, including the warmer weather and the return of tax refunds. Things slow down later in the year as families become busy with school and extracurricular activities. Others are distracted by upcoming holiday plans and end-of-year work goals. Don’t be surprised if you notice average prices increasing during the spring and summer or falling during the winter. This is normal.

The answer depends less on the current state of the market and more on your own unique financial position. Do you have enough money set aside for a down payment? Are you willing to take out a loan at a higher interest rate to get into a new home sooner? Have you thought about what your home could be worth and where you might be able to price your home if you choose to sell in the next few months? These are all important questions to ask before you make a final decision about whether you’ll buy, sell, or stay. Nothing currently happening would suggest that everyone should avoid the market entirely.

Many buyers and sellers in the Malibu area are glad they chose Barry Roth to help them with their Malibu real estate transactions. Barry is a knowledgeable and experienced real estate agent who serves clients in the Malibu area. Barry is deeply passionate about buying and selling homes, but he’s even more passionate about helping his clients. He works hard to ensure every client feels valued and respected throughout the process. Contact Barry today if you’re interested in buying or selling a Malibu home.

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