We did our research and talked with other local Realtors and feel confident in our predictions for the real estate market this year! Take a look at what the Realtors on the Pritchard Homes Team say about the upcoming year:
“While 2022 was a whirlwind of a year with the first half breaking records in sale prices and market time, and a rapid mid-year shift, we had an unexpected (but very welcomed) busy end-of-the-year market! I think we are moving towards a more stable market beneficial
to both buyers and sellers. Home values have increased 25-35% over the last 3 years (depending on town and neighborhood) and while we have experienced a shift in values due to increased rates, we must remember that CT values didn’t increase for about 10 years, so the home value increase was necessary. Historically, we saw a 3.5% increase in home values year-over-year so 10 years of little to no increase equated to about 35% value correction!
I predict that rates will continue to ebb and flow for the first few weeks of the year, eventually teetering off early-to-mid 2023, to a more acceptable interest rate in the 5s. Inventory will increase, and we will continue to see homes in multiple bidding situations when priced well. We will see less people bidding on each home and offers will not be as inflated over the asking price as years before. Focus on our local market and stats as the impact differs here than other areas of the country.”
– Sarah Pritchard Provenzano, Team Leader & Realtor
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“As we move into 2023, I think we will see buyers becoming more active early on. Although buying power has changed with high interest rates many are still eager to find a home. Inventory will still remain low and prices will continue to level off. I do believe newly updated homes and new construction will continue to sell quickly.”
– Dawn Gitman, Realtor
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“With rates that continued to rise last year, we saw demand slow and the market cooled slightly from pandemic levels. In 2023, rates are expected to stabilize throughout the year. I’m still seeing the demand in our market area with many buyers continuing to move from NY and NJ as well as in state. The hope is that we’ll see the market begin to recover especially in the second half of the year as rates continue to decline, leading to a stronger Fall market.”
– Katie Cochran, Realtor
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“2022 was a crazy year for real estate! Based on the research we have done, it’s likely we have already seen interest rates peak. In this new year I anticipate the market will stabilize, meaning more consistent interest rates throughout the year and stability in housing prices. According to Freddie Mac, Fannie Mae, MBA, and National Association of Realtors (NAR), rates are likely to hover within the 6% – 6.5% range in 2023, and decreasing towards the end of the year. With market stabilization, we will see an influx of buyers who were unable to purchase in 2021/2022 reenter the market. Due to low inventory, it will continue to be a seller’s market.”
– Jennifer Peters, Realtor
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“As inventory remains low headed into the new year, 2023 may be another great year for sellers. Regardless of interest rates, there is still a huge pool of buyers looking for their next home. As a buyer, you may find an easier time getting into your property of choice, if you can find it. While competition is still out there, buyers may find less bidding wars and homes selling for much closer to their listing price. Strategic pricing will be key for sellers this year, and a buyer who is prepared and informed will have the most success.”
– Hillary Baldwin Waite, Realtor
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“I predict inventory will remain low but will be consistent. The average time on the market will increase as a result of rising interest rates. Depending on inflation, I predict interest rates for 2023 to be somewhere between 6-8%, and likely lower towards the end of 2023. There will be a strong buyer pool in Fairfield County regardless of rising interest rates. We may potentially see more qualified, serious buyers as a result of these interest rates and fewer buyers “just browsing.” We may also see fewer sellers willing to list their homes given this current climate of the market or those still hoping to see offers and closing prices
experienced in early 2022.”
– Clare Conant, Realtor