2023 Real Estate Market - Top Four Questions

- Written by Craig Curreri

As we move into the new year, I have been receiving numerous questions regarding our local Real Estate market. Below, are four commonly asked that continue coming across my desk.

Will prices drop?

The “short” answer is prices may experience a 5-10% decline this year. Keep in mind the Real Estate market in Sonoma County has enjoyed significant price appreciation over the past few years. Last year (2022) the Sonoma County Median Price increased 9% and this increase was coming off an 11% increase in 2021. In 2020 the County had posted a 7% value gain over the prior year. Relishing 27% of price appreciation over the past three years has generated an abundant amount of equity for Sonoma County homeowners. My “Crystal Ball” Price prediction for 2023 is… values will decrease by 5-10% (giving back some of the gains created over the past three years).

Can we expect more inventory?

The availability of inventory continues to be a struggle within Sonoma County. For numerous reasons, we have been shy of available product to purchase dating back to 2011. Following the Mortgage Melt-Down of 2008, the overall lack of housing inventory has been a challenge. New construction has been extremely scarce, combined with the compounding factor of the loss of nearly 6,000 homes due to wildfires. One can quickly understand how and why we continue to experience a shortage of available homes to purchase. Additionally, homeowners with a mortgage will be hesitant to list their current home and give up their historically low mortgage interest rate.

Should I buy now or wait?

The answer to this question always depends on one’s personal situation and most importantly how long a potential buyer plans to own the asset. If someone is currently renting and looking to own a home for a minimum of three to five years, I recommend buying now and starting the journey of homeownership. If a career move (and potentially a relocation) is likely within the near future, the best answer is typically to “hold off” on a purchase waiting until the 3-5 year picture becomes more certain.

Is this a good time to sell?

Much like the above question, the answer very much lies within a homeowner’s individual situation, reasoning and/or motivation to sell a home. However, life happens and there are always variety of reasons why homeowners are prompted into becoming home sellers. My counsel is always to check with a trusted tax advisor and understand the financial pros and cons. This is a large financial decision that should be made with the upmost of prudent planning and financial responsibility. Once you have given this decision thoughtful consideration and evaluated any financial ramifications, reach out to a trusted real estate professional to further the conversation.

In closing, if you have a relationship with a trusted Real Estate professional, you are all set to gain any additional industry insights and market knowledge needed. If you are seeking straightforward counsel with a “no strings attached” approach, I am happy to answer your questions.