As I settle behind my laptop on the first day of 2023 (rather a slow start as it is well after noon) I want to take a moment to wish everyone a happy new year. As we turn the calendar, most of us look at this day as an opportunity to start fresh. Maybe we will make some resolutions, set goals or just continue on as we have been. In any event, it does allow us to reflect back on the past year.
Being a creature of habit, I don't tend to adjust activities or practices that have worked for me for generally all of my life. Instead I look back on the year and analyze what has worked best and continue to utilize them while at the same time make note of what did not work and try to improve upon them for the future. This strategy has worked for me in both my professional and personal life. Needless to say, there are times when I slip back to "evil ways”, which is when I try to pivot and move forward rather than dwell on a mistake.
A few agents have asked the secret to my success. Let me say it certainly feels good to be asked this question, notably that my peers think so much of me. My answer has always been the same: I answer my phone whenever I am able or if I miss a call and get a voicemail, I return that call relatively quickly. This same practice applies to texts and emails.
What do I see for 2023 real estate in the greater Los Angeles area? My short and quick answer is “Let me check my foggy crystal ball”:
- Supply and demand will continue to be tight and in a tug-of-war situation. Inventory will be limited due to what I have heard being called a ‘hunkering down mentality’. Many homeowners have below 5% interest rates, hence there is no incentive to "buy up" with a higher interest rate due to affordability.
- There will be fewer sales due to the above point, and well pricing of properties must be a top priority for sellers and listing agents. Proper marketing and exposure will also be key in selling the properties.
- Serious buyers and serious sellers will be the only ones active in the market. There will be fewer lookie-lews, and I attribute this to what I call a “herd mentality" of real estate buyers.
- Interest rates will continue to hover between 4.5 - 6.5 percent. This will also affect affordability; hence I anticipate a price drop of somewhere between 6.5%- 8.5% in 2023.
I've based my predictions on the current direction the Fed is taking to curb inflation and tighten monetary policies. Needless to say, for the past three or four months I've found real estate to be changing week to week in various locations in my market. Therefore, it will be critical to watch and analyze the pockets when it comes to buying and selling.
Should you have any questions or would like clarification on these or any real estate matters, please reach out to me directly. Wishing you a great start to 2023, good health and happiness throughout the new year.
Wishing you a safe and healthy life and I look forward to your comments. If you are looking for a knowledgeable, focused and goal-oriented Realtor in the Beverly Hills area who will help you achieve your Real Estate goals, please reach out to me directly! If you are looking for a pet friendly Beverly Hills Realtor who can handle and sell the most difficult properties that no one else could, please reach out to me directly!! If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 ( m) homes@endrebarath.com or visit one of my websites at https://www.endrebarath.com I contribute a portion of my commission to local animal rescue organizations. Endre Barath, Jr. Realtor at Berkshire Hathaway HomeServices California Properties DRE#01238708
Comments(22)