2023 Real Estate: Expect a Teetering Market in the New Year
The 2023 real estate market is one Americans are curious and anxious to see return to normalcy. After such tumultuous years, buyers are eager for prices to drop and rates to fall. But will that be the case in 2023? Or can we expect another year of slow sales, unaffordable homes, and high interest rates?
2023 Real Estate Predictions
Below, we’ve compiled some expert predictions to help sort out what could happen in the 2023 real estate market. Along with big questions whose answers will determine what kind of year it’ll be in real estate.
A State of Flux Between Buyer’s and Seller’s Markets: Danielle Hale, Chief Economist at Realtor.com, predicts a “nobody’s market” in 2023. Where housing prices and mortgage rates will decline while demand lowers. Together, these factors create a kind of in-between market where demand and prices will go down. Though not enough to have a major impact on the 2023 real estate market. There are some advantages to buyers (more housing inventory), but also to sellers (longer time to sell.)
Mortgage Rates Could Finally Drop: After hitting decades-high rates of over 7%, Money.com’s experts predict a downward path for rates in 2023, though they will remain above overall averages and still too high for most potential homeowners to consider, keeping affordability of homes low.
Home Sales Decline: As mentioned above in our “nobody’s market,” home sales are expected to decline in 2023, but experts are still predicting by just how much, and how that will affect the market overall.
Big Questions Asked by Homeowners and Potential Buyers
For homeowners who have had to withstand increases in home price and big jumps in mortgage rates, expert predictions for the 2023 real estate market leave much to be desired. Bleak predictions aside, this leaves many questions going into the new year, such as:
By how much will mortgage rates decline? This directly affects how affordable homes are and how many middle-class Americans can make the jump to ownership.
Will rents go up? If demand for homes goes down, that naturally will bring demand for rental properties up. This could cause rents to continue going up even when the number of total units is also rising.
For legal guidance on residential and commercial transactions, schedule an appointment with the real estate attorney at Lee Scott Perres, P.C.
