To say that the last couple of years have been crazy for the housing market would be an understatement. Is the market going to calm down in 2023? The answer is yes, but maybe not as much as you think. Keep reading to find out 2023 housing market trends to watch for, and see how the market is doing in Lake George and the Adirondack region specifically.
2023 Housing Market Forecast: Change Is Coming Slowly
Here are the top takeaways for 2023 according to real estate specialists and economists:
Home prices are predicted to fall – but only slightly.
According to the S&P Case-Shiller Index, home values increased 7.8% from September 2021 to September 2022. However, prices fell 2.5% between June and September.
While housing prices are starting to come down, it’s a gradual decrease. The median home price is believed to be basically flat in 2023, rising 0.3% year over year.
The number of homes available for sale is expected to grow – but only by a bit.
With historically low interest rates locked in, some homeowners who would otherwise be looking to sell this year, may now be unwilling to give up that safety net. They won’t want to sell their home only to have to borrow at significantly higher rates for the next one.
While the number of homes available is expected to increase, it won’t be by much, in part because of these would-be sellers opting to wait.
The housing market is trending away from sellers and towards buyers – but not by much.
According to Realtor.com, 2023 could be a “nobody’s market” for buyers and sellers. The housing market pendulum is starting to swing away from sellers and towards buyers, but as we’re seeing with the above 2023 predictions, this change is a gradual one.
Buyers can expect less intense competition, while sellers should be prepared for more competition than in 2022 from other sale postings. However, affordability is still a big factor preventing the current housing market from completely tipping in the favor of buyers.
Homes are anticipated to take longer to sell.
We won’t likely be seeing the high tension bidding wars of the past year or two, and competition will not be as intense. Buyers will back off if they need to. They probably will not feel the same pressure as the past few years to put an offer on a house as soon as possible after it goes on the market.
We’re getting back to normal, but it’s going to take awhile.
As we look at the above predictions a clear pattern develops: change is happening gradually. The upcoming year will see a gentle calming down of the housing market.
What’s Happening With the Housing Market in Lake George & the Adirondacks?
Locally, the commercial and residential housing market is continuing to boom, and the action will likely persist as we head into 2023.
The 30-acre Canoe Island Lodge resort with its 2.7-acre island in Diamond Point recently sold for $10.7 million in cash. Earlier in the year, the Water Slide World property in Lake George was sold to Schermerhorn Real Estate Holdings for $3 million.
In addition, Lake George Village’s former Ramada Inn is being converted into residences, and condominiums are being developed at the intersection of Route 9L and Bloody Pond Road.
With the return of Ice Castles and the Lake George Winter Carnival in early 2023, the Lake George area continues to market itself as an enviable year-round destination. Many who vacationed here or in the Adirondacks as a child are looking to put down roots in the local community.
If you’re in the market to buy or sell a house in the region, get in contact with me today!