2023 New Year's Real Estate Predictions!

California Association of Realtors estimates that California medium home prices will fall 8.8% in 2023.

Zillow projects that home prices in the San Francisco metro area are forecast to see a 3.6% drop in the next year, the largest in the top 20 metros in the country.

Zillow also projects a decline of 6.1% in the Bay Area home prices in the next year. Home values in the Bay Area have grown 25% in the past three years according to Zillow and the forecast price declines for the next year still won't bring values down to a level that would be affordable to most people.

Inventory will continue to be an issue based off the fact that high interest rates will prevent anyone from trading in the properties that they locked in low interest rates with refinancing over the last two years. It’s finally a buyers' market of sorts...Many experts agree that they don’t predict interest rates going up much more.

Monday Team Predictions

• Interest rates will go up a little more after the beginning of the year but then start declining around June.
• The investment property market will continue to take a beating even if the eviction moratorium goes away (reach out to your favorite Monday team agent to explain why.)
• Condos will continue to remain unpopular as the buyers have gotten pickier with the current market and require extra space and a backyard area.
• Higher days on the market will become more normalized, something that we have not seen in almost a decade.
• Only the most turnkey/sexy properties will receive multiple offers, resulting in a bidding war. Aka, sellers actually have to try now. “It's a price war and a beauty contest”.
• There will be more tech layoffs, however it will not affect the housing market. No crash in sight!

2023 Non-Real-Estate Predictions

• Elon Musk continues his culture war on Twitter and gets a little bit crazier than he currently is. He will do something extreme, and Tesla stock will plummet further.
• Alien community will surface from hollow earth and Putin has a mysterious death.
• More crypto scandals.
• Kanye goes to jail (after they find him).
• California will finally build up more reservoirs to hold all the water when we do get tons of rain to help when we have drought years.
• Kardashians will become irrelevant, as they always should have been.
• Keith Richards dies.
• Kanye runs for president and becomes Trump’s VP nominee.
• Oakland to lift eviction moratorium and provides effected landlords with lifetime access to chicken.
• Fingers and fries at Raising Caine’s on Hegenberger.
• Congress actually passes student loan forgiveness plan.
• Kim Kardashian’s exes plan at the top yacht party in Bermuda Triangle to launch Kanye’s 2024 presidential campaign.
• Researchers correlate use of pre-lit Christmas trees to consumption of holiday egg nogg.