Top HomeLight Agents Reflect on a Turbulent 2022 Real Estate Market, and Predict What’s in Store for Buyers & Sellers in 2023

Top Mount Kisco real estate agent Elisa Bruno-Midili of The Café Residential Team at McGrath Realty Inc is featured in national real estate research report by HomeLight discusses what buyers, sellers, and homeowners can anticipate entering the 2023 real estate market

January 17, 2023 — Mount Kisco NY  — Top Mount Kisco real estate agent Elisa Bruno-Midili of The Café Residential Team at McGrath Realty Inc is featured in the HomeLight Top Agent Insights for New Year 2023, the latest quarterly survey conducted by HomeLight. HomeLight is the real estate technology platform powering top agents across the United States.

The report highlights how buyers and sellers – in response to the market’s affordability crunch and economic uncertainty – are adapting their expectations and behaviors.

Up until this quarter, agents participating in HomeLight’s Top Agent Insights survey continuously reported the market was in favor of the seller. Only 30% of agents characterize their market as a seller’s market in our latest survey, down from 51% in Q3 and 95% in Q2. The usual slowness of real estate’s off-season is compounding the effects of an abrupt spike in interest rates.

“Economic uncertainty is causing Americans to be extra mindful of how they save and spend their money. The continuous increase in interest rates are causing prospective buyers to re-evaluate if right now is the right time to purchase a home. In result, this is causing a buildup of inventory, and for the first time in a while, easing demand significantly,” reports HomeLight top agent Elisa Bruno-Midili “Sellers are considering pausing as well. In Mount Kisco seniors especially are re-examining their plans to sell or downsize their homes, adjusting their retirement plans in order to combat inflation. We’ve even seen some agents renovate their homes to accommodate their extended family or postpone their plans to sell their homes all together and modify it to live in indefinitely.”

Even though some may decide to pause, there will be a shift in power that will present new opportunities for buyers – specifically move-up buyers. Homeowners who need more space but were sidelined by the 2022 market will have their chance to jump into the market, as 48% of agents said inventory would increase the most in their market for larger / move-up single family homes. Although, agents also report interest rates will worsen affordability and some buyers will downsize their housing expectations, causing the starter home market to remain competitive.

Key findings from the survey include:

• Buyer power expecting to ramp up in the new year. 34% of agents predict a buyer’s market in 2023, a significant jump from 10% in Q3. Agents anticipate this shift based on current buyer behavior within their local markets – 53% of agents say an increasing number of buyers are pushing back on inspection items and 51% of agents say because of lack of competition, buyers are able to make fewer offers on homes.
• Would-be sellers will renovate rather than move. Nearly two-thirds (62%) of agents agreed that would-be sellers would delay their plans to sell and opt to remain in their current homes. Top agents predict that homeowners will look for ways to adapt their homes for their future housing needs, including using their equity to finance home upgrades (38%), building additions in order to avoid selling (24%), and converting rooms in order to adapt their current homes to their needs (17%).
• Retirees are shifting gears to combat inflation and housing affordability. In response to high home prices and lack of affordability, retirees are having to get creative with their plans for 2023. Agents predict that retirees will delay plans to sell or remain in their current homes (59%), look to sell while downsizing (55%), and change where they plan to retire due to higher costs (42%). The data further shows that agents (39%) say that retirees will adapt their homes to age in place, and nearly a quarter (22%) of retirees will adapt their homes to invite their children and/or grandchildren to live with them — both to save money and help their kids save money to eventually purchase their own home
• Larger or move-up single family homes and new construction inventory will unlock first in 2023. Affordability challenges continue to pile up for some buyers, with 42% of agents predicting that their market will see a decrease in first-time homebuyers, while only 21% expect to see an increase. Millennials and growing families should consider larger or move-up single-family homes to get a foot in the door, as 48% of agents say that these inventory categories will increase the most. Following move-up single-family homes, 37% of agents think that inventory will increase the most for new construction homes, and 36% think that inventory in their market will increase the most for starter homes.
• Bright kitchens and luxurious bathrooms are the new standouts to prospective buyers. Homeowners looking to sell should take media speculation on new design trends with a grain of salt. When in doubt, sellers should keep it neutral – 84% of agents say that buyers still prefer to see light and white color schemes in the kitchen. Bathrooms that are both modern and functional with spa-like qualities are likely to help a house sell in 2023, with 64% of agents saying a double-sink vanity will be the most popular.

For additional findings, download the full HomeLight Top Agent Insights for New Year 2023 Report.

Survey Methodology

HomeLight’s Top Agent Insights Report for New Year 2023 was fielded between October 29 through November 9, 2022 in an online poll of 1,031 top real estate agents across the country. Agents were selected to participate in the survey based on the same performance data HomeLight uses to identify top real estate agents for over a million homebuyers and sellers nationwide.

Elisa Bruno-Midili is a real estate professional with over 35 years experience. She is a downsizing specialist and provides guidance and resources for sellers.