The 2023 Real Estate Market As Seen by the Experts
Information is always an important factor when making big decisions. If you’re planning on buying or selling a home, it is crucial that the knowledge to help you is available to you.
Let’s see what the experts have to say about the real estate market during 2022 and 2023.
Taking a step back to look into the 2022 market
2022 was defined by a volatile market for the real estate industry. The homebuying upswing at the start of the year suddenly cooled off as the rapid rise of mortgage rates and inflation put a strain on buyers’ purchasing power. The 3.22% 30-year fixed mortgage average in early January almost doubled to 6.42% by the end of the year.
What are the expert seeing for 2023
Experts are seeing normalization of the market with mortgage rates stabilizing along with home sales and prices moderating.
In a virtual economic and real estate summit held by NAR last December, Dr. Lawrence Yun, PhD, NAR Chief Economist and Senior-Vice President for Research, sees the mortgage rates lowering as we approach 2024. However, we may not go down to 3% and instead settle at around 5.5%. There might not be a change in home price growth with half of the country seeing some growth, while the other seeing some decline.
In an article from realtor.com last November, a 22.8% increase in the existing homes for sale inventory is forecasted (year over year) for 2023. However, while there may be an increase in options to choose from, this will not be enough to shift to a buyer’s market as prices will remain above affordable.
Experts have mixed insights on the appreciation of home prices this year. In an article from Keeping Current Matters, some experts forecast prices going up, while other experts see prices going down. With prices varying depending on the region, it may remain neutral on a national level.
In times of uncertainty, it’s always best to seek out the advice of the professionals. I provide accurate and precise information on the state of the market, real estate trends, and comparable sales to help you be in a position to succeed and reach your goals all while easing your stress through the process.