What Can Sellers Expect in the…Magentaverse
That’s right, it’s the year of Magenta, Pantone’s official color of 2023. Take note, one and all. Magenta is a signal of strength, or so I’m told by those who know. Here’s what I do know: for much of 2022, sellers were in the driver’s seat. Home values were soaring, inventory was next to nil, and prospective buyers were in panic mode, especially back in the winter and spring. Bidding wars became common, frenzied even, with sellers sitting back patiently awaiting the highest bid.
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So, What’s Next?
Toward the end of 2022 things shifted somewhat: home values returned to earth, inventory increased, and buyer demand slowed (much of that due to escalating rates). Make no mistake, this is still a great time for sellers—and there are always opportunities for buyers. But 2023 will not be 2022. Let me say that again: the coming year will not be a repeat of 2022. I foresee a trend in which the market shifts from a pandemic-based mindset to a market-based mindset. If 2022 witnessed people trying to maximize function in a same-sized house, 2023 will see people trying to pack as much function as possible in an even smaller house. One thing is certain, the Magentaverse is coming in hot!
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3 Things Sellers Can Do to Maximize Home Value Today
(And Well Into the Future)
When selling a house, it’s always a good idea to understand not only what buyers are looking for but also to anticipate the trends of the future. When possible, implement those trends before your sale so that your home’s value will have “hang time” (that is to say, staying power).
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01 Install Techy Things
You’ve heard the talk no doubt, about smart homes, or home automation. It’s a hot item already and heating up every day. Advances in technology are allowing homeowners to make their homelife safer, easier, and more enjoyable. Look for the increase in the use of voice assistants and AI in smart homes to continue. On the heels of Amazon Echo and Google Home, homeowners are looking to add smart devices to their homes to increase security, control lights, play music, and adjust thermostats. For sellers, adding even some of these features will help your home stand out.
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02 Create a Cozy Castle
Your home may indeed be your castle, but that’s not to say it can’t be a cozy and fun castle. Ever since Covid, homeowners have prioritized the importance of maximizing the home living experience. Many have pushed back against the concept of toxic productivity, endeavoring to add more balance to their lives. They are nestling more at home, rather than slaving away at the office. The general idea is: “if we’re spending more time here, we’re going to make sure it’s fun and comfortable.” Home theaters became a big thing; so has the creation of harmonious spaces, meditative rooms, and resort-like features: indoor pools, mini bowling alleys, music enclaves, cocktail rooms, and reading spaces.
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03 Go Solar!
It turns out those Incas were on to something when they were worshipping the sun’s power back in the day. Well, leave it to us to come full circle and re-discover the power of solar energy. One reason for the increase in solar energy is the fact that costs are minimal—and declining more and more through utility incentives, rewards, and the like. Solar is becoming more affordable, so both homeowners and businesses are starting to make the switch. Storage batteries are also becoming more affordable. This means we can store more solar energy to use when we need it, further reducing our need for fossil fuels. This increasing affordability of solar energy and storage batteries is helping to speed up the transition to a clean energy future.
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Enjoy the Bubbly—and Don’t Sweat a Bubble
One last thing…don’t sweat the dreaded Bubble. Despite the anxiety of some, there will not be a housing bubble like 2007-2008. Although there has been much discussion about the possibility over the past year, it’s not gonna happen. Here’s why. Over the past couple of years, home prices did indeed get ahead of themselves due to the “perfect storm” of pandemic-induced demand and historically low mortgage rates. And while I expect year-over-year price declines in 2023, I don’t believe there will be a systemic drop in home values. Also, as financing costs start to pull back in 2023, I expect that will allow prices to resume their long-term average pace of growth. So relax. It’s going to be a brighter, magenta-hued year.
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Best of Luck in the New Year:
We are thankful for each of you!
Be well,
Charles Magenta