You likely want to know what to expect from the housing market this year if you're planning to buy or sell a property soon. In the past year, the real estate market has undergone a major shift due to economic instability. paired with a higher mortgage rate. Buyers certainly showed less interest and demand when it came to purchasing a home.
How about this year? In 2023? Would there be any changes or improvements?
Here’s one perspective from 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.”
With that being said, experts have a good prediction for the real estate market if inflation and mortgage rates continue to ease and stabilize. We would definitely have a good market this year!
Here are more predictions from other experts on real estate:
“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.”
Home prices will vary by local area but will be net neutral nationwide as the market continues to adjust, according to Lawrence Yun, Chief Economist at National Association of Realtors (NAR):
“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.”
And lastly, 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.”
If you’re still having second thoughts or looking for another perspective to help you. The best approach to making sure you're up to date on the most recent market information, whether you're seeking to purchase or sell a house this year, is to work with a dependable real estate expert. Our team can help you with all your real estate questions!
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