Redlands Real Estate Market Forecast 2023

Going into 2023, many buyers and sellers are still determining how to act when searching for Redlands real estate. As demand is regulated by forces like low inventory and increasing interest rates, the market will continue to cool going into the new year. Buyers can expect a more agreeable market, but sellers will still benefit from increasing median prices. For a better understanding of forecasted market trends for 2023, here’s what you need to know about local market conditions today.

Currently, Redlands is experiencing cooling trends. With home sales down compared to last month, current market activity indicates an opportunity for buyers. Fewer home sales creates less competition, which works in a buyer’s favor. Additionally, replenishing inventory is pushing the area closer and closer to a balanced market, as the current four months of supply is nearly double compared to last year. Buyers searching today have many more options and more time to decide.

Market conditions are swinging out of the sellers’ favor. Although median prices are still increasing year to year, monthly prices are on the decrease. Property prices are rising at a slower pace than before, and paired with high inventory and low sales, sellers are likely feeling the effects on their home sales today. Although days on the market are increasing, sellers today can still expect their listed properties to sell on the quicker side.

Luxury buyers see Redlands, especially South Redlands, as prime Southern California real estate. Redlands is about an hour from Los Angeles, a straight shot down I-10, which is also the northern border of Redlands. Crucially, Los Angeles is more than four times denser than Redlands in population per square mile. South Redlands is even more spacious, a suburban neighborhood with large private estates and villas. The city’s many parks and open spaces accommodate families and anyone who likes a bit of quiet. Redlands has an elevation of some 1,300 feet, and the market includes luxury homes with excellent views.

Redlands is expected to continue the cooling trends it is experiencing today, which may push the city into buyers’ favor. Across the state, sales of single-family homes are expected to decrease as the US economy slows entering the beginning of next year. Single-family home prices are also likely to fall, which is a possible reality for areas like Redlands with higher inventory levels and low sales.

In addition to the decrease in single-family home sales, another factor that will impact costs and demand is increasing mortgage rates. With higher rates, fewer buyers can qualify to purchase a home, which creates a slower home sales process. Even so, increasing supply and decreasing demand will continue pushing the market towards a buyer-friendly market, great for those searching for properties in the area to live or invest in. To plan how to act among next year’s trends, its best to work with local agents like those at the Brimm Realty Group

Buyers interested in moving to Redlands can count on market conditions to be on their side entering 2023. With Inventory projected to increase, more options will be available to those searching, a stark contrast to two years ago. Additionally, with buyer demand projected to decline, buyers can expect less competition, creating ideal conditions to negotiate with sellers on offer prices, contingencies, and more.

There are a few things to be mindful of entering 2023. For one, a large regulating force of buyer demand is rising interest rates. As of this writing, the average California rate for a 30-year fixed mortgage is about 6.3%, while a 15-year fixed mortgage averages about 6.2%. Buyers should also factor in forces like the cost of living, which is higher in Redlands compared to the rest of the United States. Housing is also more pricy, so buyers should consider all aspects of a home purchase before making an offer.

Sellers looking to list their Redlands home may find it more challenging than in the past couple of years. The increase in inventory means sellers can expect more competition among others listing their homes in 2023, resulting in a longer selling process. Decreasing demand from buyers will also lengthen the process, and sellers may have to offer more buyer incentives to sell their homes. Although prices are rising, they will continue to slow as inventory keeps replenishing and demand remains low. Sellers should expect their properties to list at lower prices than in past months and work with an agent to price their listing competitively.

Investors interested in Redlands may find it a good time to act in 2023. With nearly half of homes renter-occupied in the city, there’s enough inventory and demand for investors looking to make a profit. Also, as interest rates rise, some buyers may turn to rentals as an alternative. The median rent in Redlands has increased significantly since last year. And with areas like North Redlands, Redlands East, and Downtown Redlands ranking as some of the highest appreciating neighborhoods in San Bernardino County, investors can count on their purchase to pay off in the long run.

Buyers will love searching in Redlands in 2023, as the continued inventory increase on current levels will create market conditions favoring those planning a home purchase. Investors will benefit from high inventory and low competition, Redland’s real estate appreciation rates, and rental rate growth. Sellers will find it more difficult to attract buyers to their listing and should partner with an agent to prepare and price their home sale correctly. When you’re ready to start planning your 2023 home transaction, contact local agent Walter Brimm to guide you through the process.

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