Last year, over 11,000 residential properties were sold across Detroit at a median price of $260,000. However, the Detroit real estate market is constantly changing.

Understanding the current market will ensure that you get a good deal when selling your property. It can also help you choose the right time to put your home on the market and when to explore alternative options.

So what will the Detroit housing market look like in 2023 and how will this affect homeowners? Read on to find out everything you need to know about Detroit housing prices and real estate market trends for the year ahead.

1. Prepandemic Detroit Housing Market Developments Resume in 2023

Before the COVID-19 pandemic began back in 2020, Detroit was preparing for a number of huge construction projects.

As the world returns to business as usual, these projects are back on the agenda. And this is great news for Detroit’s infrastructure and redevelopment.

Let’s take a closer look at some of the commercial and residential projects that are due to be completed in Detroit this year.

Major Real Estate Developments Opening in Detroit This Year

A number of huge real estate projects have been under construction for the last five years around the city. According to JC Reindl of the Detroit Free Press, these seek to transform existing landmarks in the city into hubs of business and community.

They offer a combination of retail spaces, event spaces, office facilities, hotels, and residential units. Some developments set to open this year in Detroit include:

• The Book Tower and Book Building development
• The Lee Plaza
• The Enclave
• Michigan Central Station

So be sure to check out these new attractions and everything they have to offer!

Godfrey Hotel

A number of amazing hotels are due to open around Detroit over the next year. These don’t just benefit tourists either!

They also create jobs within the community and offer amazing restaurants and event spaces.

Godfrey Hotel on Michigan avenue plans to do just that! This 227-room hotel in Corkwtown is due to open its doors at the end of spring.

Housing Developments in Detroit

Of course, real estate investors aren’t just interested in commercial spaces around Detroit. A number of huge residential projects are set to welcome their first residents this year.

These include:

• 229 residential apartments in the Book Tower and Book Building development
• 318 new homes near Lafayette Park (part of the Lafayette West housing development)
• 124 new homes in the Brush Park neighborhood (part of the Brush Watson development)
• 165 new homes in The Exchange in Greektown, an eye-catching, top-down housing development

So these new homes may have an impact on house prices in your local area.

Community Spaces

Community spaces are incredibly important in Detroit. This is probably why a lot of new developments try to incorporate community spaces into their design.

For example, the Book Tower, Lee Plaza, and Michigan Central Station will offer a host of restaurants, office spaces, and event spaces.

However, these aren’t the only community-focused spaces opening in Detroit this year. The Detroit Food Commons will also be opening its doors. This is a new, full-service grocery store on Euclid Street supported by the Detroit People’s Food Co-op.

This year we can also expect to see a decision about Detroit’s 60 empty school properties and how these will be used to serve the community.

What Does This Mean For Homeowners?

Investment in Detroit’s real estate infrastructure is great news for homeowners in the area. These projects improve the attractions around your neighborhood and create jobs for people moving to the area.

This can have a huge impact on home prices in your ZIP code. If a new project is due to open in your area then you may want to hold off selling for a month or so. Once it is up and running the value of your home could soar.

It is also worth looking at which areas real estate investors are interested in developing. Real estate developers are always looking for valuable land around Detroit.

If your home is in a valuable location it could be worth a lot to them, even if the building itself needs work. In that case, selling to an investor or iBuyer is a great way to get a fair price for your home.

2. Changes to Detroit Housing Prices Will Vary by ZIP Codes

As ever, home prices vary depending on where you live in Michigan.

In fact, around Detroit itself, some ZIP codes can expect to see price increases of more than 3.5%. However, neighboring ZIP codes have seen a drop in home value by 3.5% or more.

This is because changes in your neighborhood can have a huge impact on the value of your home. These developments might include:

• Job opportunities (or lack of opportunities) within your neighborhood
• Local crime rates
• Transport links
• Real estate developments in your area
• Local school rankings

For example, investment in real estate development can increase the value of your home. In comparison, a rise in crime or lack of employment opportunities can lower the value of your home.

ZIP Codes Expected to See an Increase in House Prices in Detroit

According to Joe Guillen and Annalise Frank at Axios Detriot, ZIP codes in south Detroit can expect to see the greatest value increase in 2023. These include:

• 48226 (an increase of 5.2%)
• 48216 (an increase of 8.1%)
• 48209 (an increase of 12.3%)
• 48210 (an increase of 9%)
• 48218 (an increase of 3.8%)
• 48229 (an increase of 4.4%)

A few areas in northeast Detroit can also expect to see increases in their property value. However, these won’t be quite as impressive as areas in the south of the city.

Properties in 48204, 48203, 48202, 48234, and 48224 will see rises of between 0.5 and 2.9%.

ZIP Codes Expected to See a Decrease in House Prices in Detroit

In some areas, the value of property is set to drop this year, especially in the east of the city. Homes in the Jefferson Chalmers neighborhood have dropped around 4% in value already.

Properties with 48207, 48213, 48214, and 48212 ZIP codes can expect to see a drop in value between 0.9 and 3.5%.

What Does This Mean For Homeowners?

Understanding the current market is vital if you are planning to sell your home. This can tell you the right time to sell your property or buy a new one.

For example, if your home has recently dropped in value it might be worth delaying selling it. In comparison, buying a property during a price lull could give you a great return on your investment well you come to sell it.

If you are looking to sell your home but its value has dropped, you may want to consider renting it out for the time being. This gives you additional income to tide you over until property prices start rising again.

Alternatively, you could look for an iBuyer. These buyers offer instant quotes and buy properties for development. So they are likely to give you a fair price.

3. The Detroit Real Estate Market is Still Running on a Lower Inventory

According to Whitney Burney at WXYZ Detroit, there are currently fewer houses on the Detroit real estate market.

Several months ago experts expected to see around a six-month supply of homes for sale. Now that figure has dropped to a one-month supply.

This could be a contributing factor to the increase in Detroit housing prices. With fewer properties on the market, buyers have to be more competitive with their offers.

However, it isn’t all good news for homeowners in Detroit. Rising interest on mortgage rates is putting a lot of potential buyers off searching for their dream homes.

This means that people may look to offer below the asking price or postpone their search altogether. As a result, the market is moving more slowly than it was about six months ago.

What Does This Mean For Homeowners?

The slower real estate market in Detroit will have a big impact on homeowners looking to sell a property.

If you are planning to put your home on the market then you can expect to wait longer for offers on it. You may also receive offers below your asking price. So some homeowners may prefer to wait it out until the offers start coming back up.

Alternatively, you could look into other options for selling your home quickly. Contacting real estate developers and iBuyers is a great way to do this.

On the plus side, the low real estate inventory also means that the value of your home could have gone up. If you have the financial stability to wait for a good offer, you could get a lot for your property.

4. Home Sales and Sale Prices Dropped in November

It’s fair to say that the US is in a state of economic uncertainty. With rising inflation, GDP contractor, and high-interest rates, many people are becoming reserved about how they spend their money. And this is set to continue throughout 2023.

So it’s hardly surprising that Detroit saw a drop in home sales figures in November last year. In fact, Candice Williams of The Detroit News reports that this figure fell by 33.8%.

This has had an impact on housing prices within the city, especially due to the mortgage interest that potential buyers face. While the inventory of homes available is still low, buyers are more reserved about making high offers.

As a result, sales prices for homes have also dropped in Detroit in the past months. Of course, this depends a little on where you live.

That said, this could change with time. For the last few years, buyers in America have enjoyed incredibly low interest rates. So the sudden rise in these rates may temporarily put the off buying.

As these rates stabilize and become the norm, buyers may start accepting them as part and parcel of owning a home.

What Does This Mean For Homeowners?

At the moment, real estate agents predict that, for the next few months, the market won’t favor buyers over sellers or vice versa. This means that making a return on your investment could be more challenging in 2023.

However, this depends a lot on the interest rates that buyers can expect to pay on your home.

This depends on how much your property costs and how much potential buyers need to borrow. If your property is within the 3% interest range, this isn’t too steep for potential buyers. In comparison, people looking at paying 5 to 6% or more are likely to offer below your property’s value.

So if you are selling a smaller property then you should still get a fair price for your home. If you’ve made a bigger investment you may want to hold off until interest rates have leveled out. Experts expect this to happen later in the year.

5. The City’s Persistent Housing Issues Aren’t Going Anywhere

It is no secret that residents of Detroit have faced a whole range of housing issues. This is partly due to poor quality accommodation and a lack of housing infrastructure.

Aaron Mondry interviewed a number of Detroit residents about their housing disasters over the last three years. Their experiences, published by Outlier Media, included:

• Rental scams
• The use of lead paint in properties
• Lack of access to water in homes
• Risk of flooding in the Canal District

The end of the COVID Emergency Rental Assistance Program in June 2022 also increased the demand for rental properties in Detroit.

What Does This Mean For Homeowners?

At the moment, you may face challenges when it comes to selling your property in Detroit. However, if you are a homeowner looking for additional income, you may be able to rent out an existing property.

In that case, it may be worth looking at what your property has to offer. Excellent rental properties need to:

• Be in a good location
• Be in great condition
• Offer useful amenities (such as laundry facilities, built-in appliances, and plenty of storage space)

Some buyers may also be looking to invest in real estate to rent out. Making sure your home accommodates renters easily will help to attract these buyers.

Key Takeaways For Homeowners in Detroit

As you can see, over the next 12 months a lot is going to happen within the Detroit housing market.

Although Detroit housing prices have dropped, the rental market is opening up. On top of this, the latest real estate developments could add value to your home in the coming months.

However, if you are looking to sell a property quickly, the Detroit real estate market might not be your best option. Low sale prices and slow movement mean that it could take a while to get a fair price for your home.

Fortunately, iBuyers are here to help. This is a quick and easy way to get a cash offer for your home that reflects its worth. So what are you waiting for?

Get a free home valuation from iBuyer today. We’re here to help.

The post The Detroit Housing Market in 2023: Here’s What 5 Reports Say appeared first on iBuyer Blog.

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The average home price is over $1 million in King County.

While property prices in the greater Seattle area have been on the rise in the last few years, the Seattle housing market is showing signs of cooling. In many parts of Seattle, the average home price is dropping. Some homes are selling for below their asking price, hinting at a potential buyer’s market in 2023.

If you bought your home in the last few years, you may not be able to sell it for a profit in 2023. However, if you benefited from the recent rise in property prices, it may be the best time to sell. This is why it’s important to understand the state of the Seattle real estate market and how experts predict the market will evolve this year.

Want to learn more about Seattle real estate? Read on for everything you need to know about real estate in Seattle and the opportunities for real estate investors.

Property Prices Likely To Fall

It’s no secret that the Seattle real estate market experienced a massive boom during the pandemic. This boom was largely due to the growing tech industry and the economic climate at that time. Seattle was not alone in this boom as property prices in Nevada, Texas, and other parts of the country also grew exponentially.

It’s important to remember that the Seattle property market was already incredibly valuable. This made the recent property boom even more significant when you compare it with other parts of the country. However, the rise of home prices did make inequality in the city worsen.

As the economy cools down from pandemic highs, prices around the country are starting to settle. As mentioned by Christine Clarridge and Sami Sparber in their Axios report, the rising interest rate is taking a major toll on homeowners. Many are seeing their monthly mortgage payment increase by around 50%.

In the report, Christine and Sami break down a simple mortgage loan of $684,900 that was taken out at a rate of 2.75%. The monthly mortgage payment for this home would work out to be $2,796 over 30 years. The same mortgage would cost around $4,282 since the interest rates have risen to 6.4% today.

This massive rise in mortgage payments has made homeownership difficult in the Seattle area. Affordability directly relates to the increase in properties being listed on the market. However, the supply of homes on the market only helps decrease the demand for housing.

Since there’s more supply than there is demand, experts are all predicting that property prices are going to flatten out and fall this year.

Opportunity for Buyers?

Whenever we talk about falling home prices, the first thing many people think is that it’s an opportunity for buyers. However, a recent report by The Seattle Times shows that this may not be the case in Seattle.

The property market expanded so rapidly that homes are far out of reach for most people in the area. This means that even if home prices were to fall by 5% in the next year, people still wouldn’t be able to afford them.

The report indicates that homebuyers would need to earn at least $169,000 a year just to afford the median home in the area. This is only possible if they also have the cash on hand for a 20% down payment on the home. The reality of the Seattle property market is that people in the area simply can’t afford a property at this price point.

This is a clear indication that property prices may have to decrease by more than 15% to attract new buyers later this year. If you have a home and want to sell, waiting for the market to turn may not be the best idea. The truth is that if you can get a buyer for your home today, the best idea would be to sell it now.

Rent Prices Are Falling

When property prices increase, it’s only natural for rent prices to increase as well. This is because real estate investors have to invest more money to buy the property. In return, they want to make more money from the property to pay off their costs.

However, the reverse isn’t always true. When the property value decreases, property investors tend to keep rental prices the same. While this does mean that tenants can benefit from no increases in rent, the underlying affordability issues pose a serious threat.

This is because affordability is causing many people to move to other cities in the country. This has increased vacancy rates in the city, causing property owners to decrease rental prices. While this effect has not occurred yet, the early signs are starting to show.

A recent report by Angela King and Katie Campbell for NPR stated that many people are opting to rent a home rather than buy one. Inflation and rising interest rates have made homeownership incredibly expensive. The economic uncertainty of 2023 combines all of this to result in a more cautious approach for tenants and potential buyers.

More Affordable To Rent

The bottom line is that it may actually be more affordable to rent instead of buying a home in Seattle right now. It’s true that property prices are trending down, but they are still incredibly expensive. On the other hand, rents are looking softer and more stable.

Besides being the more cautious option, renting can also help you save towards a bigger down payment. This is an important concept as a larger down payment can make buying a home more affordable. Your total loan amount will reduce, so the inflated interest rate won’t have as much of an impact on your monthly payments.

Affordability Issues

Seattle housing is not cheap. The important thing to remember is that Seattle property wasn’t cheap even before the real estate boom in 2021. This means that the current state of the Seattle property market is massively out of reach for many people in the area.

Even if the property prices were to decrease, they would still be far out of reach for locals. The current economic climate is also causing many people to sell their homes and move away to more affordable cities in the country. This leaves the local market with even less demand for property.

Incoming Recession

It’s no secret that a recession may be imminent in the United States. Even though it was not officially declared, a technical recession did occur in 2022. However, the full impact of this on the economy was only realized once major companies started shedding jobs.

The tech industry was one of the biggest industries to slim down their workforce. Headlines spread around the world about companies like Microsoft and Amazon cutting thousands of jobs overnight. While this may be in preparation for a recession, acts like this tend to increase panic and cautiousness in the market.

This means that demand for massive investments like property tends to decrease significantly.

The Influence of the Tech Industry

The tech industry is massive in Seattle. International tech giants such as Meta, Google, Amazon, and Microsoft all have offices in the area. This has brought thousands of high-paying jobs to the area, causing local property prices to skyrocket.

This influx of talent caused property prices to rise steadily over the last decade. While this was great for real estate investors, it does highlight the clear link between the industry and the property market. This means that the property market continued to rise as these companies continued to pull in record profits.

However, the tech industry has stumbled in the last couple of months. Major players in the area have announced layoffs, causing thousands of people to lose their jobs across the country.

Amazon, Google, and Microsoft all announced that they would be cutting thousands of jobs in the Seattle area in 2023. However, Meta shed 13% of its entire Seattle workforce. This is around 1,400 jobs in Seattle alone.

Since all the tech companies are cutting jobs, it’s very unlikely that these professionals will quickly get another position in the industry. This has led to panic in the tech industry and can have a major impact on both property and rent prices in the area. If these professionals decide to move to California or New York, the demand for local housing will plummet.

Nate Bek illuded to this in an article on GeekWire in December 2022. This report also indicated that the influx of property on the market will see prices fall throughout 2023.

The Economic Climate

As mentioned earlier, there are clear signs that a recession is on the way. Even if a recession doesn’t happen, the fear of a recession is enough to plunge the local real estate market. This is because buyers don’t want to commit to a big investment like a home right now.

Buying a home is a serious commitment. Most people buy a home with a mortgage that spans 20 or 30 years. This means that it’s a massive financial commitment that you have to prepare for.

If you’re not confident in your job or the general economy, you’re not going to want to invest in a home right now. This is why many people are skeptical and would prefer to rent. Since rent prices are softening, it’s actually proving to be more affordable to rent in 2023.

The Seattle Housing Market: Key Takeaways

The Seattle housing market is unique and set to evolve in 2023. As these market reports suggest, Seattle home prices seem to have peaked and are trending downward. This makes it the perfect time to sell your home.

If you’re thinking about selling your home in Seattle, here are some of our key takeaways from these Seattle housing market reports:

• Home values have passed their peak and are trending down
• If you bought your home in the last few years, you may not be able to flip it for a profit right now
• Don’t wait around for the market to change direction, you may end up losing even more money
• Since property prices are down, you’ll be able to find an affordable home easily
• Listing your property by yourself could take months or years to eventually sell
• An upcoming recession could impact home prices even further
• The shrinking tech industry could signal lower property and rent prices in the near future
• If you sell your home, renting may be a more affordable option

Home prices are set to decrease throughout the year. While it may be a natural reaction to wait for prices to rise further, this may never end up happening. Waiting for too long could mean losing even more money before finding a buyer for your property.

A Buyer’s Market

It’s clear that the Seattle real estate market is currently a buyer’s market. So, how do you ensure that you can still get the best price for your home? This is where iBuyer can step in to help you get an accurate price for your home in no time.

iBuyers from around the country can give you a cash offer for your home in the blink of an eye. This means that you don’t have to wait around and showcase your home for months before finding a qualified buyer. Instead, you can get an online evaluation and a cash offer instantly.

If you want to sell your home in Seattle, we are here to make the process as easy as possible. You can visit our website today and get an instant home value estimate online. Don’t hesitate to reach out to us if you have any questions or concerns.

The post Seattle Housing Market: 4 Reports on 2023 appeared first on iBuyer Blog.

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Arizona real estate experts say that the local market is in crisis. It has become less affordable than ever to buy and rent in the Grand Canyon State. The Phoenix housing market is no exception.

Median sale prices rose over 24% from January to October 2021. Meanwhile, the average price to rent in Phoenix is expected to reach $2,475 by 2028. That is a far cry from the average rental property in 2017, which was only $1,034.

What is driving this affordability crisis in Phoenix? There are many reasons. But one of the most significant economic factors driving Arizona’s housing crisis is a shortage in home supply.

During COVID, all-cash investors snatched up homes on the market. Even corporations joined in on the trend. In Arizona, big companies bought an incredible 31% of all single-family homes for sale.

At the same time, sellers are sitting on their homes because they can not find new ones to move into. And the pandemic caused a slowdown in new home construction, which is down over 50% from the previous decade.

There is good news, though. Reports from 12news, Axios, and Livabl have found that the real estate market in Phoenix, Arizona is about to get way more attractive to potential buyers. That may be bad news, though, if you’re a seller.

What can homeowners looking to move out of their homes in Phoenix do to combat the coming buyer’s market? We answer this question and dozens more in this article, so keep reading to learn more.

Months after historic highs, Phoenix housing market enters buyer’s market

In a recent report from 12news, Michael Doudna writes that median Phoenix real estate prices are trending downward. The report comes after over ten years of record high home prices due to short home supply.

In May of 2021, the local median home prices hit $480,000. It was around this time that the Fed started increasing interest rates. As interest rates rose, Phoenix home sale prices plummeted.

The median home price started to depreciate over the next six months, hitting $425,00 at year-end. With lower home values, big real estate investors and cash buyers have started to shy away from the Phoenix market.

Now, a year later, prices remain relatively low, especially compared to earlier this year. In the first two quarters of 2022, home prices started rising again. The price increases were due to a short supply of homes.

In November 2022, the median home value still sat at $425,000. That is a 0% change year-over-year and a negative change from earlier in 2022. We are officially entering a buyer’s market in Phoenix.

What does this report mean for homeowners?

If you are a buyer, you are entering the market at a great time. You may have to pay higher interest rates on your home loan. Yet, at the same time, you will save money on your new home, especially compared to this time last year.

For sellers, the news is less positive. You missed out on a great time to sell your home, with median real estate prices hitting record highs in 2021. Yet, you can still expect to make a profit if you purchased your home prior to last year.

If you purchased your home in 2021, you might want to think again before selling. Most homeowners who bought their homes during the seller’s market will not be able to turn a profit in today’s market.

What’s more, homeowners looking to sell this year will have to make concessions. According to the 12news report, 47% of homes closing feature one or more concessions, which run homeowners a median of $9,000.

Phoenix’s real estate market is finally calmer, but not cheaper

Axios Phoenix’s Sami Sparber sees the market’s cooling prices as a different kind of indicator. Axios’ report claims that supply has returned to pre-pandemic levels. From 2021 to 2022, inventory increased 136.7% year-over-year.

At the same time, Axios refutes 12news’ claim that median home sale prices are back to pre-pandemic levels. They reported the median home sale price at $475,000 in August 2022. However, Axios agrees that prices on trending down.

Yet, despite these signs of a healthier Phoenix real estate market, home sales are still stale. Why? It is more expensive than ever to buy a home, even if that home’s value is closer to pre-pandemic levels.

Phoenix households only needed $41,855 to afford a home in 2020. Fast-forward to now, and lenders are recommending buyers have over twice as much annual income to afford a Phoenix home at $85,618.

The increased cost of taking out a loan has killed the competition in the market. Axios Phoenix reports that pending sales have dropped 61% since this time last year. Homes stay on the market longer, too, averaging 13 days more than in 2021.

What does this report mean for homeowners?

The good news is that these are signs the housing market is correcting from the over-priced real estate we saw in 2020 and 2021. Supply and demand have evened out, making it more affordable and less competitive to buy a home.

Unfortunately, sellers are not so lucky. According to the report, the average seller is getting only 98.1% of the listing price upon closing. Compare that to 2021, when homes sold 1.6% above asking.

Sellers can also expect their homes to stay on the market longer. Because of the higher cost of borrowing, there are simply fewer people looking for homes. Expect buyers to become even more cautious in the coming months.

Home prices may correct even further going forward if interest rates remain high and prices stay relatively flat. However, if home sale profits remain relatively low, fewer people will be looking to sell, which could drive prices up.

Arizona housing market predictions for 2023

The reports discussed above are retrospective. So, you may be wondering what you can expect from the housing market in Phoenix throughout the rest of 2023.

According to a report by Livabl’s Erin Nicks, a looming recession and rising interest rates could make the market cool off even further.

Factors currently keeping prices high include a relative dearth of homes on the market and the housing price bubble still leftover from COVID. Still, the report backs 12news’ claims about a buyer’s market for 2023.

Livabl’s report consolidates findings from Moody’s Analytics, Fortune, and Wells Fargo. According to Moody’s, national home prices could drop 20–25% throughout 2023. Home values in Phoenix could drop as much as 57.47%.

Fortune also reports that the housing bubble in Phoenix and other overvalued markets is about to pop. Work-from-home made the perfect recipe for skyrocketing prices. Now, demand is bottoming out while supply is on the rise.

Wells Fargo’s report also spells doom and gloom for Phoenix’s once-hot home market. Markets that saw massive price hikes in 2020 and 2021 will see the largest corrections. Phoenix is no exception.

What does this report mean for homeowners?

Like the other reports we’ve discussed, Livabl believes that the Phoenix-area real estate market is cooling. A potential recession in 2023 could make problems worse for sellers, especially if consumers pull back on spending.

Real estate markets in Canada, Sweden, and New Zealand can serve as a model for what to expect. The overvalued housing markets in these countries saw negative home value growth after recovering from the pandemic.

In Canada and Sweden, average home values declined by over 1% per month over the course of six months. Meanwhile, New Zealand saw double-digit declines over the course of eight months, dropping a whopping 11%.

Unlike the other reports, however, Livable is optimistic about Phoenix real estate’s future. The local climate, private sector growth, and affordability will continue to draw buyers to Phoenix, keeping demand healthy.

Key takeaways

If you want to sell your Phoenix home in 2023, there is good and bad news. Here are our key takeaways from these Phoenix housing market reports:

• Home values are trending downward, signaling a buyer’s market
• If you bought your home in 2020/21, it will be hard to make a profit on it in 2023
• You may have to make thousands of dollars in concessions to close
• If you do sell your home, there is enough supply on the market to find a new one at a relatively affordable price
• You can not sell your house for above or even on par with the listing price
• If you list your home, it will stay on the market for longer than last year
• A 2023 recession could force home values even lower

Home prices may cool off even further throughout 2023. If you are waiting for home values to go back up, that may not happen. Now is the best time to sell your home in Phoenix.

But how do you ensure you get the best price in this buyer’s market? That is where an iBuyer can come in. iBuyers will give you an instant cash offer on your home, so you can sell your home fast and for what it’s worth.

If you want to sell your home in Phoenix, we can help. Enter your address in our search bar to get a no-obligation home value estimate from iBuyers in Phoenix.

The post The Phoenix Housing Market in 2023 – Here’s What Lies Ahead appeared first on iBuyer Blog.

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Did you know that in 2022, there were 324,237 U.S. properties that had foreclosure filings, such as default notices, scheduled auctions, and bank repossessions? This is a 115 percent increase from 2021!

When a borrower stops making their mortgage payments and goes into default, the lender can legally seize the property through a process known as foreclosure. So if you’re in danger of losing your home and want to stop foreclosure, it’s in your best interest to take measures to prevent this as soon as possible.

A foreclosure may feel like the end of the world to a homeowner, but it is not. Continue reading to find out what you can do to help you stop foreclosure.

What is foreclosure?

When a person buys a house or property with a loan from a bank or other lender, they have to pay back the loan amount within the time frame given. If the homeowner doesn’t pay this amount back, the property is said to be in foreclosure. This means that the bank or lender takes over home ownership or property.

Foreclosure can also occur if the homeowner doesn’t pay the taxes on their home.

After foreclosure, the lender or the bank can sell the property to recover the unpaid mortgage. The buyer cannot object since the property or residence is used as the loan’s collateral and can be repossessed by the bank or lender if the buyer defaults.

7 Ways how to stop foreclosure

There are some options to stop foreclosure. If your home loan payments are behind and you want to keep your home, you might be able to negotiate one of the following:

1. Discuss with your lender

If you are having difficulty keeping up with your mortgage payments, you should first get in touch with your lender. Sometimes, lenders are ready to work with borrowers to develop mutually agreeable solutions, such as loan modifications and forbearance plans.

2. Request forbearance

In a “forbearance agreement,” the lender agrees to let you pay less on your mortgage or nothing for a while. Forbearance usually lasts between three and six months, but it could last longer if the lender’s rules and your situation allow it.

You might get a forbearance agreement if you’re having trouble making your payments right now, but you can show the lender that you’ll be able to resume payments in the future. Keep in mind that at the end of the forbearance window, you’ll have to start making payments again. However, what will happen is that you’ll have to pay more to make up for the payments you missed.

3. Loan modification

A “loan modification” is when you and the lender agree to change the loan terms. Most of the time, the primary objective of a modification is to make the monthly payment less.

Usually, a change means:

• Lowering the interest rate
• Adding any past-due payments to the loan balance
• Making the loan last longer, say from 20 to 30 years

In a modification agreement, the mortgagor may agree to set aside a portion of the unpaid sum as a “principal forbearance,” which doesn’t accrue interest. However, the set-aside amount is usually due at the end of the loan period as a “balloon payment.”

4. Deed in lieu of foreclosure

You might be able to negotiate with your mortgagor to let you deed over the property, so there is no need for foreclosure. A “deed in lieu of foreclosure” is the legal term for this action.

Before you take this step, ensure you get a written agreement from your lender that they won’t try to collect the “deficit” (the shortfall between the home’s sale price and your mortgage balance) from you. Again, if the lender writes off a deficiency, you might have to pay taxes.

Also, if you have another bond, say a second or third loan on your home, you won’t be able to use this option.

5. Consider short selling

With your mortgage company’s approval, you may be able to prevent foreclosure by selling your property fast and for less than the amount owed on your loan. This is referred to as a “short sale.”

If you live in a state that lets lenders take legal action for a deficiency judgment following a short sale, you should make every effort to get your mortgagor to commit in writing to clear you from repaying the deficit. This is especially important if you live in a state that permits lenders to sue for a deficiency judgment. However, if the lender agrees to release you from the deficiency, you may be subject to tax implications.

6. Refinancing with a hard money loan

Real estate-backed loans, known as “hard money,” are notoriously tough to secure. In this situation, the property itself serves as collateral.

Because of the higher risk involved, hard money loans are used in property transactions and provided by private individuals or firms rather than traditional financial institutions.

The higher risk associated with hard money loans results in higher interest rates charged on those loans. This is because hard money loans might result in a significant financial burden for the lender if the borrower fails to repay the loan.

7. Selling your house

In the event of a foreclosure, you can choose from a few different avenues for selling your house. First, you can sell your property the old-fashioned way by putting it on the market and maybe even using a real estate agent. While this is the best strategy for realizing your home’s total market worth, it might take months or even years to complete, which isn’t feasible in a pre-foreclosure situation.

The Sheriff typically only gives you a few weeks’ notices of a foreclosure sale. As a result, this would make it harder for a realtor to sell the property on the traditional market within the prescribed period.

But there are ways to sell that are quick, easy, and not too painful. One of these is to sell on auction immediately. Another is to sell for cash to an investing company. These buyers purchase homes fast and for cash that they think have a lot of potential, either because they need work or are in a good area.The Benefits of Selling Your House Before Foreclosure

Selling your house before foreclosure has many advantages. First, you’ll escape a credit report foreclosure. Most foreclosures stay on a credit record for seven years and may affect your ability to borrow or rent.

Second, buying another home is faster. For example, people who want to get an FHA loan have to wait three years after a foreclosure to be able to apply. In addition, many lenders won’t lend to you if you’ve had a foreclosure.

Avoid deficient judgments. You have a deficient balance if a foreclosure sale doesn’t cover your mortgage. A deficit judgment allows the lender to collect this difference in some states.

How you avoid foreclosure

As a homeowner, it’s up to you to do everything you can to keep your home from going into foreclosure. The simplest way is to avoid things that make it happen. You are more likely to lose your home if you:

• Have too much debt
• Have an adjustable-rate mortgage
• Have an excessive or unusual mortgage
• Don’t have enough money set aside for emergencies
• Don’t have insurance
• Buy a home you can’t afford

But sometimes, difficulties with money can make it hard to make regular mortgage payments. If this happens, the only smart thing to do is inform your lender immediately of your situation.

Most of the time, they will be prepared to assist you in catching up and working with you. This is because it will cost them more time and money to foreclose in the long run. In addition, lenders usually don’t want to foreclose on your house unless it’s their last option.

When is it too late to stop foreclosure?

So, we know there are ways to delay or stop a foreclosure. But is there a point when you can no longer do anything? Yes, but you might be surprised at how late in the process you can stop or slow down a foreclosure.

You can still stop the foreclosure until the new buyers sign all of their paperwork and the deed is legally transferred. But it’s best to talk to and work with your lender as soon as possible. If you speak to your lender before you miss a payment, they are usually more willing to work with you.

Stop foreclosure proceedings in their tracks!

If you are in danger of losing your home, you should act as swiftly as possible to stop foreclosure and keep your home.

But it’s essential to keep in mind that every circumstance is different. So it’s important to think carefully about your options before making a choice.

Are you looking for a quick and easy solution to your imminent foreclosure? We have many real estate investors interested in purchasing homes like yours and are willing to pay cash for them. The procedure is straightforward, and the transaction can be finalized in as little as two weeks!

Contact us today, and you may receive a cash offer in as little as a day!

The post How to Stop Foreclosure: 7 Actionable Tips for Homeowners appeared first on iBuyer Blog.

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The City of San Antonio is the seventh most populous city in the United States and the second most populous in Texas, behind Houston. It has an approximate population of 1.46 million residents, known as San Antonians. The metropolitan area, known as the Greater San Antonio area, has a total population of around 2.6 million people, making it the 24th-largest metro area in the United States.

Undoubtedly, San Antonio is one of the best cities in the United States in which to live. It is known for its relaxed way of life, affordability, amazing food scene, high safety rating, and strong housing market.

In this blog post, we will focus on the latter point—the San Antonio Housing Market. Here, we will take a closer look at four reports on the housing market in San Antonio which will give you a clearer understanding of what is happening on the ground currently and moving forward in 2023.

These reports include a look at how the San Antonio housing market is expected to rebound after the effects of the COVID-19 pandemic and how the growth rate for rents in the city is beginning to slow down. We will also focus on the competitiveness that exists within the rental market in the city and look at some of the apartment projects currently in the works. Let’s get started.

The Housing Market Is Expected to Rebound

According to a report by Realtor.com, per Ramzi Abou Ghalioum, a reporter for the San Antonio Business Journal, San Antonio’s housing market is expected to show positive growth in 2023. This follows a recent slowdown, brought on by factors such as rapid price appreciation and rising interest rates.

The report looked at home sales and price data across the 100 largest metropolitan areas in the United States. In the case of San Antonio, it is expected that home sales in the city will climb 2.5% this year. In terms of average San Antonio housing prices, it is expected that this will increase by around 4.6%.

It is interesting to note that while the expected price appreciation in San Antonio is lower than the national average of 5.4%, in terms of growth in sales volume, it is anticipated that it will far outpace the national rate of change, which is predicted to drop by more than 14%.

Looking at that predicted growth in pricing, this would mark a significant rebound for San Antonio. In the months between June and December of last year, for example, home prices in the area declined by 5.5%.

It is also interesting to note that the outlook for the San Antonio New Braunfels area is quite contrasting to many other US cities, including those which saw an increase in housing prices and local real estate sales during the COVID-19 pandemic.

For example, home sales in Phoenix, Arizona are expected to fall by more than 18% this year, with Sarasota, Florida expected to experience a drop of more than 28%. Within Texas itself, it is expected that the home sales for Austin will drop by 6.6%, along with an expected 3% increase in the price.

Outside of San Antonio, it is predicted that El Paso will experience the highest increase in price changes and forecasted sales this year in Texas. In terms of sales, an increase of almost 9% is forecast, along with a 5.4% increase in price.

The bottom line here is that the cost of purchasing a house in San Antonio will rise in 2023. That is good news if you are planning to sell your property this year, especially if you are planning to sell it hassle-free for cash through iBuyer.com.

The Growth Rate for Rents Is Slowing Down

After experiencing rent hikes during the COVID-19 pandemic, it is expected that growth rates will slow throughout 2023. According to one market analyst, rent growth in San Antonio will decline toward the area’s historical average of between 2% and 3% annually.

Certainly, this is good news for residential tenants in San Antonio, as reported by Madison Iszle in the San Antonio Express-News, who have faced rapidly rising rents during the pandemic. There were a number of causes for this during the pandemic, including more people seeking apartments of their own, construction slowdowns, limited inventory, and the rise in remote working.

Between the second and third quarters of 2022, rents in San Antonio fell by 0.6%. Again, there is a number of reasons for this retreat in rent prices, including a softening of demand and an increase in the construction of apartments and other residential properties.

In the years of the pandemic, rents in the area soared. Between the first quarter of 2020, when the pandemic began, and the third quarter of 2022, asking rents in San Antonio rose by almost 18%, reaching an average of more than $1,240 per month.

This increase also came at a time when the rising cost of housing as well as rising mortgage rates put homeownership out of reach for many people. The majority of the rent growth the area experienced came back in 2021 when there was a rebound following the first, most difficult year of the pandemic.

It’s interesting to note that there is some variance in rent prices depending on the different parts of the city. For example, between the first quarter of 2020 and the third quarter of 2022, the asking rent increased by 21.9% on the North Side, by 19.7% on the Northwest Side, and by 19.7% on the far West Side.

In these submarkets, we are noticing a greater supply as of late, with many new apartments currently under construction. For example, there is 2,200 units in the works on the far West Side, 1,600 in the works on the Northwest Side, and 720 in the works on the North Side, which will help to ease demand.

The Rental Market Is Also Becoming More Competitive

A new report looking at the San Antonio rental market has highlighted how it is becoming increasingly competitive. Currently, for every vacant rental property in the area, there are as many as 12 potential tenants, per Michael Karlis, writing in the San Antonio Current.

This is interesting, particularly how other reports highlight a slowdown in apartments’ asking prices in San Antonio. In fact, San Antonio was named the seventh most competitive housing market in the state of Texas last year, with El Paso at the very top of the list.

To determine the rankings, the report looked at a number of factors. These included:

• The number of days each rental remained vacant
• The occupancy rate of each city’s apartments
• The percentage of renters who renewed their leases
• The share of new apartments completed

A majority of renters in San Antonio chose to renew their leases in 2022. In total, more than 94% of all rental properties in the area were occupied, thereby creating a huge demand for available units.

San Antonio and Texas as a whole continue to attract many out-of-state renters, including many from California. They are attracted to the state’s affordable lifestyle along with excellent job opportunities in high-income sectors. While this has increased competition within the rental market, the strong pace of apartment construction has helped to reign this in somewhat.

According to this report, San Antonio sits behind El Paso, McAllen, Dallas, Forth Worth, Central Texas, and Austin in terms of the most competitive rental markets in 2022.

Interestingly, the rental market in San Antonio in 2022 was considerably hotter during the peak rental season compared to the first part of the year. In the first part of the year, the average time a rental unit was vacant was 33 days. In the peak rental season, this vacancy period was reduced to 29 days.

To note, when we speak of the first part of the year, we are referring to January to April. When we speak of the peak rental season, we are referring to May and August, when demand is at its highest.

Apartment Projects Are in Works

As we have highlighted above, a considerable number of apartment projects are in the works in San Antonio. For people interested in moving to San Antonio or those who are struggling with high rent prices, this should come as good news.

As of right now, there are a total of 12 apartment projects in the works in San Antonio, according to Steven Santana from MySA. This includes both renovations under new ownership and projects that are ground-up builds. Combined, these apartment projects will result in more than 3,800 new units in the San Antonio area.

Let’s take a look at these San Antonio-area apartment projects currently in the works. First up is the Tobin Estates Phase 3 project, which will result in 359 additional units. Construction on this project is due to commence imminently.

Construction of a new apartment complex in New Braunfels, known as the Oka Run Village, began in October of last year. It has an expected completion date of January 2025 and will include 330 new units.

The 1800 Apartments project on Center Point Road, close to the Tanger Outlets in San Marcos, will result in 330 new apartments once completed. The Josephine, an ongoing project located at W. Josephine St, will result in 261 units.

A large new community is currently being developed near Texas A&M University’s Southside campus. Known as VIDA San Antonio, this community will have a grand total of 1,400 units.

The Potranco Commons project, located on the far Westside, will result in 360 affordable apartments being built. A similar number of apartments (334 to be exact) are under renovation in Leon Valley. This project is known as Parc 410.

Construction of a new 32-storey luxury apartment tower, known as 300 Main, began in April last year. Located on Soledad St, it will result in the creation of 354 new apartments. On W. Commerce St, a 16-storey apartment high-rise is planned to bring in 255 new apartments. The project is on the site of the old Continental Hotel in downtown San Antonio.

The aptly-named Elmira Street Apartments project will result in 263 new apartments. This is a seven-story, $54 million luxury apartment complex that will include a ground-floor restaurant.

Other smaller projects in the works include the Katherine Courts Apartments (27 units) and Pine @ Carson (21 units).

Key Takeaways on the San Antonio Housing Market

There is a lot of information that we can take from the above reports when it comes to the San Antonio housing market in 2023. Certainly, it is encouraging to note that the housing market in the city is expected to rebound. This is especially true for homeowners who are planning to sell either their primary property or a secondary home.

Both the average price of a property in San Antonio and the number of home sales in the city are expected to rise in 2023, by 4.6% and 2.5%, respectively.

It is also interesting to note that the growth rate for rents is slowing down, at the same time that the rental market is becoming more competitive. With an increase in the asking price for rents during the COVID-19 pandemic, it is expected that this growth rate will slow to historical averages in 2023.

San Antonio, and many other cities in Texas, is quickly becoming an attractive option for people relocating from states such as California. This is increasing competition for available rental apartments, with an average of 12 potential tenants for every available rental unit in the city. Competition is highest during the peak rental season, which is noted as between May and August.

Lastly, it is encouraging to note that several apartment projects are in the works in the San Antonio area. This includes the 1,400 units project underway near Texas A&M University’s Southside campus. More residential properties on the market will help to make it easier for the public to find accommodation in San Antonio.

If you are looking to sell your house for cash without the usual hassle of selling on the private market, sell it through iBuyer.com.

The post The San Antonio Housing Market in 2023: Here’s What 4 Reports Say appeared first on iBuyer Blog.

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