Georgetown, Texas, is a unique and historic community located about 30 miles north of Austin in the heart of the beautiful Texas Hill Country. The large and growing city is known for its small-town feel, convenient location, and high quality of life. Georgetown is also home to several historic buildings and landmarks, including the Williamson County Courthouse and Jail, a stunning Victorian-era-style building.
In a time when the economy is slowly recovering, there is no question that real estate is one of the most important sectors of the market. With so much money on the line, it is essential for buyers and sellers to have an accurate forecast of where prices are headed coming up in the new year. In this article, we will discuss the Georgetown, Texas, real estate forecast looking ahead to 2023.
A cooldown in rising home prices
Part of what made area prices increase so extensively in 2021 was the high demand and low supply of homes for sale. Buyers often had to make all-cash offers and bids over the asking price to secure a home, which left out many potential buyers from being able to secure a home. In 2022, price increases have slowed down. Since November 2021, Georgetown homes for sale have seen a much more modest price increase of just 18.1%.
As the market shifts in 2023, Georgetown will see an even further stabilization of home prices. While prices will slowly calm and discontinue the red-hot rising trajectory from 2022, prices are not expected to plummet. Buyers can expect price cuts in some communities and a more stable market overall with leveling prices, which may enable hesitant buyers to finally reenter the house hunt.
Interest rates to remain steady
The current interest rates are perceived as high and can turn many potential buyers away from the market because they think it is too costly to purchase a home. While there were increases in rates during the pandemic, current rates are historically low compared to those in the double digits several years ago. Interest rates in 2023 are not expected to continue rising but will now return to pre-pandemic lows. Steady interest rates and cooling home prices can allow buyers to enter the market and make home ownership more affordable. You can research lenders in the area to review their rates and loan options to make an informed choice and secure a lower rate.
Better buying conditions
The Georgetown, TX, real estate market heavily favored sellers in 2021 and early 2022. Sellers could list their homes at higher prices and often had multiple offers to choose from. These offers were often significantly over the asking price with minimal contingencies to ensure a quick sale. Sellers also had an advantage during negotiations because they knew there were limited homes available. In 2023, Georgetown buyers may experience improved conditions as the rising prices have cooled down, leaving many sellers more willing to negotiate.
Less demand and more inventory
Georgetown buyers can expect a slower-paced market in 2023. The market will start to balance out with a higher inventory, less competition, and a slowing demand for homes. Potential buyers will have more options for homes and condos for sale in Georgetown, Texas, making the market less competitive. Buyers will have a better chance at securing a home and possibly for a lower price than in 2022.
Homes may stay on the market longer
Changes are coming, but the market will stay strong
Stay updated by working with a local agent
Team West Real Estate is a talented team of Georgetown, TX, real estate agents with experience working with first-time buyers and knowledgeable investors alike. The team of professional agents has advanced marketing and real estate skills to provide clients with an unparalleled experience. They are confident we can help buyers and sellers navigate any market and meet their real estate goals.
*Header photo courtesy of Shutterstock