It might already be a couple weeks into the new year, but I'm back in the swing of things with new listings and new data for you. I always say I don't have a crystal ball but, I've crunched the numbers and taken a look at my go-to experts around the country to help you and all of our clients make the best possible moves this year - at least when it comes to real estate!
Read on for what I'm anticipating when it comes to interest rates, the economy, housing prices, and home design. (But I'll start with the fun stuff!)
Let's make this year full of joy, abundance, and all the happiness we can surround ourselves with - in our home and the people around us.
-Cindy and Co.
Top 6 Design Trends To Look For In 2023
1. Modern English
British + modern trends. Comfort and practicality, mixed with heritage pieces. Plain and neutral, but high quality. A la deVOL Kitchens.
2. Modern European
Arched door ways, ceiling designs, tends to touch more on art deco. Natural material, stone marble and wood. More eye catching and dramatic in details. Colors neutral - discover more here.
3. Heritage Chic
Elegant and sophisticated pieces paired with curated personal art, extensive use of wood details and wallpaper, and fashion-forward fabrics. This one is hard to pin down, with overlaps to Modern English.
4. Modern Contemporary
The most popular in our time. Declutter storage areas tucked away, a sense of openness. Open spaces and purposeful design. Increasing use of natural woods.
Japandi design is the combination of Scandinavian functionality and Japanese rustic minimalism to create a feeling of zen and simplicity. Clean lines and bright, yet still neutral spaces.
6. Dopamine Decor
It's not for everyone, but this trend is holding over from 2022 - it eschews white and beige and adds a large amount of color in bold and pastel shades.
Macro vs Micro Economy vs. Your Personal Economy
I'm going to be honest here - your guess is as good as mine on where the economy might go next in 2023. We are in a very interesting time, and although I follow the big movers and read all I can, I’m not an economist.
I will say to take the headlines with a grain of salt, as always, and remember that the macro economy (overall interest rates, inflation, trade negotiations) impacts each local economy in different ways. Even the price of eggs is vastly different in an Francisco than here. And that in turn, affects us all differently based on our own job situation, liabilities, and future plans. So I encourage you all to talk to a wealth advisor to make sure your financial planning is right for your personal circumstances.
With tech giant lay offs in the news and who knows what coming next, I know it's tempting to freeze and wait it out. My two cents is to consult with a trusted fiduciary advisor to check your options. There may be ways for you to continue growing your nest egg while still remaining cautious. Especially before you make any big decisions!
Real Estate Market
TLDR: Real Estate values ALWAYS goes up over time.
I know - it's hard to believe an ALWAYS statement, but if you look at the aggregate date, especially around here, that's the truth. In the short term, home values can fluctuate and recede a bit. But remember the equity you have in your home is what you get AFTER you sell it. It’s just a theoretical number to you, as you watch that number go up or down. Except perhaps for the tax man unfortunately.
As we move closer to spring, experts are predicting we can anticipate ta market that may not boom, but will bloom more gradually this year. Buyers and sellers that were in a holding pattern waiting for winter to end are finding a way to get into a good position for the coming season.
Buyers are getting their finances square away and are getting ready to go shopping, if perhaps at a lower price poit than they might have been looking at a year ago. After all, life doesn't wait for interest rates to go down and sometime people have to move regardless.
Sellers, face fierce competition for the attention of buyers. They're going to be contending with inventory increasing in most areas. Now it's all about standing out and getting noticed. It's important to make the right improvements and make sure the property is properly priced for the market.
The local data for median closed sale prices for single family homes show a mixed picture in our region. In King county, the median price is up 1.85% over this time last year, while others are flat or still at a winter low. Each local market is different and what is offered is different - sadly, there is no magic number for all and that's where local agents that keep an eye on their neighborhoods come in.
Woohoo! Interest rates dipped down to the lowest they've been since September!
Whether that downward trend continues really depends on some outside factors like the Fed. But it's good news over all and there's been a spike in mortgage applications - 25% last week! - confirming there is pent up buyer demand. Wow--when is the last time we heard purchase applications jump that much?!
As inflation continues to cool, mortgage rates should continue to improve. Keep in mind rates will not move in a straight line
Just how low will they go? The Mortgage Bankers Association is forecasting mortgage rates to fall to 5.2% by the end of the year and Lead Analyst Logan Mohtashami thinks rates may dip below 5.0%. Read more here: