What Experts Are Saying About the 2023 Housing Market

By
Real Estate Agent with HomeSmart 0561240

What Experts Are Saying About the 2023 Housing Market

 

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 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.com, 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.

Bottom Line

If you're looking to buy or sell a home this year, the best way to ensure you're up to date on the latest market insights is to partner with a trusted real estate advisor. Lets connect.

 

 

 

 

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Comments (7)

Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

We’re all just doing the best we can and that’s all we can ask of each other and experts and ourselves. Good luck in 2023!

Jan 24, 2023 05:02 AM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

To be clear, I didn’t mean that in a kind of sarcastic way. It’s hard to tell with text sometimes. Be well!

Jan 24, 2023 05:04 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I wonder how they define slight price declines.  In Elk Grove, I would say we have already passed the "slight" marker.  It will be interesting to see how the rest of the year pays out.

Jan 24, 2023 05:05 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Shayne. As an agent when the pie gets smaller, you need to cut a bigger piece. Factors over which you have no control, should not affect your take. Enjoy your day.

Jan 24, 2023 05:24 AM
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
The Grit and Gratitude Agent

Being aware of what the experts are saying is one thing.  What is the better behavior is to continue to do what you are doing, plan, look to the past and reach out to existing clients.  Remember experts are like a 24 hour clock, they are right twice.

Jan 24, 2023 05:43 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great post!  Thanks for sharing and enjoy your day!

Jan 24, 2023 07:24 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Shayne and thank you for sharing this information with us here in the Rain.  Hope you are having a good week.

Jan 24, 2023 08:07 AM