Will Real Estate Crash in 2023

If there's one thing you need to keep in mind if you're concerned about a real estate crash in 2023, it's what's known as the "13% Average" regarding home prices. This is the average amount of value a home loses once a market crash starts happening. However, since this is only the average amount, this means many homeowners like yourself may experience a much sharper drop-off in terms of your home's value. For example, when the housing market crashed in 2008, homeowners in Florida, Michigan, and California often saw their homes drop in value by as much as 40-50%, leaving them with far less profit when trying to sell. Thus, the longer you wait to sell your home, the more value it will lose over time. Already this year, experts have found most home values have dropped 16% or more, and may continue to drop as the nation's economy gets more and more uncertain.

Faster Closing

When you go the traditional route and put your faith in a real estate agent to sell your home, you're setting the stage for your home to be on the market for perhaps as long as one year or even more. If you do this during a period of time when a crash is taking place, your home will stay on the market even longer and you'll come away with much less profit when a sale finally takes place. If you choose instead to work with a company that makes a quick all-cash offer for your home as-is, the closing process from start to finish may take as little as one week. Before you know it, you've sold your home, have maximum profits in your hand, and have avoided putting yourself and your home at the mercy of unstable real estate prices.

The fact is that when you put your home in the hands of a traditional real estate agent, potential buyers will likely only consider the property if your home is in perfect condition. If it isn't, this delays the sale and makes it more likely your home will lose value along the way. Selling your home for an all-cash offer eliminates this potential problem for your finances, since you won't need to be spending thousands of dollars to make repairs that may or may not result in the sale of your home. Since mortgage rates have also risen substantially in 2022 and into 2023, this also makes it more likely that it will take much longer to sell your home through the usual methods.

If you think you may be the only person on your block who is selling their home using the all-cash offer option, you're very wrong. As of April 2021, cash-offer sales accounted for an amazing 25% of all home sales in the U.S., meaning one out of every four homeowners decided to avoid the perils of potentially seeing their homes lose value due to economic conditions over which they had no control. This was a substantial increase from 15% in 2020. In most cases, cash-offer sales are great for homeowners who live in real estate markets that are known for being wild, unpredictable, and volatile. Thus, when the market begins to show signs of slowing down, it's not the time to decide to wait things out and see what happens. Instead, it's time to realize you can maximize your profits by taking an all-cash offer.

Now that mortgage rates have skyrocketed over the past year or more, many people who may have been eager to buy a home have decided to sit on the sidelines and wait until interest rates start to fall. Unfortunately, it has also led some potential buyers to bite off more than they could chew. As a result, many sellers find themselves assuming a deal is all but done, only to have buyers come up at the last-minute and cancel the deal due to being unable to gain financing or other reasons. Cash-offer deals don't work this way, since the company has the cash ready to put in your hand. When deals fall through and your real estate agent has to go back to the drawing board, this leaves the door open for even more economic bad news to impact how much you will ultimately get for your home.

When you're trying to sell your home, the Federal Reserve plays a much bigger role than you probably realize. When mortgage rates fall, your home's value will increase. Conversely, when those rates increase as they have seemingly month after month recently, home values decrease, since properties stay on the market longer and longer. Instead of letting the Fed dictate how much you get for your home, consider the many benefits of working with an all-cash buyer.

If you've been looking online at real estate near me and have been discouraged about how many homes are still on the market, getting a free, no-obligation quote today from Quality Cash Buyers will make you the smartest seller on your block. Before you know it, you'll have cash in your hand while your neighbors will still be waiting for that elusive potential buyer to come along in a down market.