What Experts Are Saying About the 2023 Housing Market
If you're thinking about buying or selling a home soon, you're probably curious about what the housing market will be like this year. The market experienced a significant shift in 2022, when economic uncertainty and higher mortgage rates reduced buyer demand, slowed the pace of home sales, and moderated home prices. But what about the year 2023?
According to an article published by HousingWire:
“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.”
If inflation remains low and mortgage rates remain stable, experts believe the housing market will return to more stability and predictability this year. Here's what they have to say about it.
According to the National Association of Realtors (NAR) forecast for 2023:
“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, . . .”
Realtor.com's Chief Economist, Danielle Hale, adds:
“. . . buyers will not face the extreme competition that was commonplace over the past few years.”
According to Lawrence Yun, Chief Economist at NAR, home prices will vary by local area but will be net neutral nationwide as the market adjusts:
“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.”
According to Mark Fleming, Chief Economist at First American:
“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.”
If you plan to buy or sell a home this year, working with a trusted real estate advisor is the best way to stay current on market trends.
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