Are you thinking about buying or selling a home soon? If so, you will want to see what the housing market is most likely to do this year. The market underwent a major shift as economic uncertainty and higher mortgage rates reduced buyer demand in 2022. It has slowed the pace of home sales, and moderated home prices. But what is going to happen in the months of 2023?
An article from HousingWire offers this perspective:
“The red-hot housing market of the past 2 ½ years was characterized by sub-three percent mortgage rates, fast-paced bidding wars and record-low inventory. But more recently, market conditions have done an about-face. . . . now is the opportunity for everyone to become re-educated about what a ‘typical’ housing market looks like.”
The experts have agreed that we may see the return of greater stability and predictability in the housing market if inflation continues to ease and mortgage rates stabilize. Here’s what they have to say.
The 2023 forecast from the National Association of Realtors (NAR) says:
“While 2022 may be remembered as a year of housing volatility, 2023 likely will become a year of long-lost normalcy returning to the market, . . . mortgage rates are expected to stabilize while home sales and prices moderate after recent highs, . . .”
Danielle Hale, Chief Economist at realtor.com, adds:
“. . . buyers will not face the extreme competition that was commonplace over the past few years.”
Lawrence Yun, Chief Economist at NAR, explains home prices will vary by local area, but will net neutral nationwide as the market continues to adjust:
“After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines.”
Mark Fleming, Chief Economist at First American, says:
“The housing market, once adjusted to the new normal of higher mortgage rates, will benefit from continued strong demographic-driven demand relative to an overall, long-run shortage of supply.”
The best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor.
Let’s connect…Wizards of Real Estate is on standby.
Steven “RedBeard” Vertz
Owner/Operator, Managing Broker, Realtor
Wizards of Real Estate
Appleton, WI 54913
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