If you’re thinking about buying or selling a home soon, you probably want to know what you can expect from the housing market this year. In 2022, the market underwent a major shift as economic uncertainty and higher mortgage rates reduced buyer demand, slowed the pace of home sales, and moderated home prices. But what about 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."
This year, experts agree 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®, 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.”
While these opinions are addressing the overall national real estate market, it's important to remember that micro-markets may trend a little differently than national and even Greater Houston market trends. If you'd like to take a deep dive into what the forecast looks like for home sales in your neighborhood, or for future home purchasing possibilities in a new market, Let's Connect!
