2023 Housing Market Predictions

The housing market has been shifting relatively rapidly over the past couple of years, with both mortgage rates and home prices rising and falling multiple times. This leads to a rather uncertain market as we head into a new year, but here are some of the predictions from leading experts in the field:

• Homebuying costs are not coming down

• Mortgage rates have been increasing dramatically in the back half of 2022, and while this has caused a slow down in price growth this trend is expected to continue heading into 2023. Buyers will be able to choose from an increased amount of homes on the market but overall cost of home ownership will remain the same. 

• Total number of home sales will decline

• Rising rates have led to a decrease in monthly home sales, and this is another trend that is predicted to continue into the new year.  More homes will sit on the market for longer, but the total number of closed sales will decrease. 

• Home price growth will slow but not decline

• Ever since the pandemic home prices have been skyrocketing across the country. The recent increase of rates have slowed down this growth, but will likely not be enough to lead to a decline in home prices. 

• Rental prices will continue to grow

• Inflation in many different sectors of the economy has led to a massive increase in rental prices. This trend is expected to continue as landlords face increased utilities rates, increased mortgage rates, and a continuous growth in demand. 

For more information on the housing market and what to expect in 2023, give our team a call today! We would love to discuss this with you and determine what this means for your housing situation. 

If you are looking for more statistics and forecasts for the market, take a look at this article from Realtor.com.