Sotheby's International Realty Luxury Outlook Report 2023
Posted by Sean Matyja on Thursday, January 5th, 2023 at 8:41pm.
Sotheby's International Realty has released its Luxury Outlook Report for 2023. A few notable thoughts on trends in the article reflect what we have seen here locally in Park City and Deer Valley.
See the link below for the Sotheby's 2023 Luxury Outlook Report
We see a divide growing between buyers and sellers. Sellers expect a pace of sales activity consistent with the last two years, while buyers are seeing losses in the stock market and expect those results to translate into reductions in real estate prices. Neither is quite the right outlook.
We recently heard a quote calling our current market a "Nobody's Market," meaning we're not in a Buyer's Market or a Seller's Market. Neither side has favorable terms, and both seem to have significant challenges.
Many would-be sellers feel like they have missed their opportunity to sell at the highest price. Although some areas may be slightly down, good properties priced near recently sold comparable properties are still selling without too much time on the market. Another factor for homeowners thinking of selling is that they may be locked into their current home because they desire to maintain the ultra-low interest rates offered over these last two years. Selling and moving to a new home now means stepping out of an interest rate, possibly at or below 3%, and moving up to a new mortgage with an interest rate of over double that amount. It's a solid deterrent for selling and keeps homes off the market, thus reducing inventory for buyers.
For buyers, tight inventory is a major issue but not the only concern. With fewer properties coming to market, most properties are still priced relatively high, especially compared to the last year or two. And they are still moving at these current prices. For the general residential market, interest rate increases significantly impact what a buyer can afford. While the luxury markets are typically cash sales, the interest rates do not directly affect these buyers, but the turbulent stock market and headlines on inflation do influence buying mindset.
The Sotheby's Luxury Outlook has excellent info, quotes, and insight and is well worth reading. If you want specific information or sales data on your particular area of interest, please let us know.
Sean Matyja - Realtor® / Associate Broker
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