2023 Housing Market Forecast & Predictions | November 2022 San Clemente Housing Market Update
With 2023 quickly approaching, where do you think the housing market is headed? What are experts predicting?
Before diving into predictions for 2023, let’s quickly analyze what we are seeing in San Clemente.
1. Demand (00:47) - Demand is up 1% from October, but compared to last November, it is down 83%.
2. Active Inventory (01:24) - There were 118 active listings in San Clemente as of November 29th, 2022.
3. Price Reductions (01:43) - Out of the 118 active listings currently on the market, four homes have reduced their price over the last week. These reductions average right around $100k.
4. Mortgage Rates (01:56) - Rates have actually dropped roughly half a point, sitting at 6.125% for a conforming loan and 6.25% for a non-conforming loan.
5. Closed Sales (02:35) September: 53 October: 54 November: 36
6. Expected Market Time (03:02) - For homes between $1m and $2m, the average number of days to sell is 80. Homes between $2m and $4m are selling in 144 days, on average.
7. Market Seasons (03:44) - Coming out of Thanksgiving, many buyers go dormant during this time and through the holidays, but the most serious buyers are still on the hunt for a home.
On to the 2023 market predictions (04:04).
1. Rates are moving with inflation. If inflation continues to rise, so will interest rates.
2. In San Clemente specifically, we have seen a deceleration in price appreciation, but it is difficult to say that housing prices have gone down.
3. Each city and niche community will experience its own microclimate and respond differently to the shifting market.
4. Low inventory continues to cause the supply and demand issue we are seeing now.
If you have any questions about selling a property or looking to purchase, reach out to me at (949) 620-6206.