Housing market predictions this 2023! Hi, I’m Krista Mashore with Homes By Krista and eXp Realty. Will it be the year of the Buyer or Seller, or both? According to Danielle Hale, Chief Economist at Realtor.com says and I quote, “It is going to be a tough year overall for both buyers and sellers, but we are going to see a better balance between the two.” We feel that most of the dramatic shifts in the 2022 market will taper off.
Sellers will continue to see home prices keep climbing at a moderate rate but with longer days on the market. We anticipate that sellers can expect to see home appreciation rise around 5.4% this year, which is a significant drop from previous years but not a drastic decline as initially predicted. Homeowners should continue to see their home equity rise this year to an average of $25,000.
For Buyers, we expect that they will see more inventory of homes on the market. In fact, housing inventory is predicted to be up 22.8% from 2022, giving buyers more homes to choose from. This increase in inventory is still lower than pre-pandemic, which will also help sellers.
Mortgage rates are predicted to remain high, averaging about 7.4% for most of the year, and then taper off. This could affect overall home affordability making fewer people able to buy.Despite the predicted challenges for both buyers and sellers in the 2023 housing market, it is still a good time to consider buying or selling a home.
If you are a seller, now is the time to take advantage of the rising home prices and equity. If you are a buyer, the increase in inventory means there will be more options for you to choose from. However, it is important to keep in mind that mortgage rates are expected to remain high, so it may be more difficult for some people to afford a home.
One factor that could impact the housing market in 2023 is the ongoing COVID-19 pandemic. The vaccine rollout has brought hope for a return to normalcy, but it is still uncertain how the pandemic will affect the economy and the housing market. Some experts predict that the pandemic will continue to drive demand for larger homes and homes with outdoor space, as people continue to work from home and spend more time at home.
Another factor to consider is the potential for economic uncertainty. The new administration’s policies could impact the economy and the housing market. For example, if the government implements policies that increase taxes or regulations, it could impact the demand for housing.
Overall, the 2023 housing market is expected to be a balanced market, with moderate price appreciation and an increase in inventory for buyers. While there are challenges and uncertainties to consider, it is still a good time to consider buying or selling a home. As always, it is important to work with a real estate professional who can help you navigate the market and make informed decisions.
As always, if you need more information on the market and are considering selling or buying, please reach out to me and my team.