The local and national real estate markets are constantly shifting, and unless you immerse yourself in the market on a daily basis like your Malibu realtor, it can be hard to keep up. This article will give you a heads-up on what 2023 might have in store for the Malibu real estate market. You can use this information to help you decide if this is the best time to buy or sell. And if you’re looking for expert guidance on beginning your real estate journey, Cooper Mount would love to speak with you and get you headed in the right direction. Read on!
1. What has the market been like in 2022?
Malibu home prices have increased slightly in the area over the past year, at a median sold price of just over $4.7 million. Homes typically spend 60 days on the market before going under contract. Some homes will sell for more than the list price, and a few homes experience a price drop under the asking price. High-demand properties can go under contract in as little as one month and sell for more than asking.
In some ways, this mirrors what the market is doing on a nationwide level, where the red-hot seller’s market seen during 2021 and 2022 has cooled off, with price increases slowing down. While 2022 wasn’t nearly as lucrative for sellers as 2020 or 2021, it was still a good year for anyone who had a home to sell.
2. Will these trends continue into 2023?
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Probably not. Many experts predict a slight recession in 2023. Home prices are expected to stall, and they may even drop slightly. There are several reasons for this, but a significant factor is the continued growth of interest rates after they dropped to a staggering level in 2020 amidst the onset of the COVID-19 pandemic. Once as low as 2%, interest rates are back up over 6% and continuing to climb. For potential buyers, this means that homes could still cost more even if prices aren’t rising.
3. Is 2023 a good year to buy or sell a home?
Despite what you read above, 2023 could still be a great year to buy or sell a home. However, it’s important that you understand what you’re getting yourself into. Despite the expected price stall, buyers shouldn’t expect to purchase a home for pennies on the dollar. Any buyer who is waiting to purchase a home until they find an unbelievable deal will likely be disappointed when prices don’t drop as much as they expected. 2008 isn’t likely to repeat itself, at least not in 2023.
For sellers, 2023 could still provide an opportunity to command a good return if you choose to list your Malibu home for sale. While you might be discouraged by the potential for a price drop, keep in mind that prices have risen steadily over the past several years, so you’re starting from a good position. At the same time, unless you’re planning to sell your home and buy a new home in cash, you’ll have to take out a loan at a higher interest rate when you purchase your new home, and this may or may not be a decision that you want to make.
4. When is the best time to enter the real estate market?
If you’re planning to sell your home, try to have your listing ready sometime in April. According to the National Association of Realtors, May through August tend to be the busiest times for real estate, so this is when the highest offers are most likely to be put forward. Many families with children like to move at the beginning of the summer because this gives them time to settle in before school starts again in August. Also, most people have their tax returns by this time, and they can use whatever refund they received to help fund their down payment.
The market tends to slow down in September and drop off more steeply in October. By this time, kids’ extracurricular activities are in full swing, and many people have started preparing for holiday activities. This doesn’t leave them much time around the margins to look for Malibu luxury homes for sale. So if you’re looking to buy in 2023 and you have some flexibility on when you’ll do it, these are the months where you might experience less competition from other buyers.
5. What should I do to get ready to buy or sell?
Photo courtesy of Cooper Mount
For both buyers and sellers, the process should start by taking a look at your financial situation. If you want to buy a home, reach out to your lender to discuss what you can afford. Your lender will ask questions about your cash flow, your credit score, and your current debt-to-income ratio. They will use this information to determine if you can be pre-approved for a loan. You may also take some time to look online at available homes to get a feel for what kind of features and amenities may be most important to you.
If you’re thinking about selling, take some time to make a few small upgrades to your home to boost your ROI and raise your chances of receiving multiple competitive offers. You can also ask your Malibu realtor to run a Comparative Market Analysis, or CMA, on your home. This will give you a better picture of where you might be able to price your home based on recent sales in the area.
6. Who can help me?
While this information is helpful, most people find that the best way to approach the market is to partner with a realtor who can fill in any gaps in their current level of understanding. Cooper Mount’s knowledge of the Malibu area and the local market is unmatched, and he boasts a wide network of relationships with many of the area’s top builders and developers. He would love to further educate you about the state of the Malibu real estate market and help you prepare for your upcoming home transaction.
*Header photo courtesy of Unsplash
*Header photo courtesy of Unsplash