NEW WORD. Normalcy in the Real Estate Market

Real Estate Broker/Owner with PMI. Destin

Last year featured a changing real estate environment across the nation.


This New Year looks to hold some similar characteristics to 2022, but with several key differences.

With that in mind, I decided to send an overview of what prospective buyers and sellers should know in 2023.

If You’re Looking to Buy

Overall, normalcy could return, with moderating pricing and fewer transactions. Here are some specifics: Pricing may rise from current levels but at a slower pace than in previous years. According to, expectations are for overall price increases of 5.4% year-over-year. In addition, the National Association of Realtors predicts that inventories may rise from 2022 levels, potentially making buyer selection more favorable than last year. Existing home sales are projected to decline further in 2023 to 4.78 million sales across the nation versus 5.13 million in 2022. A smaller amount of transactions could be favorable for buyers, with sellers offering better terms to complete transactions. If you are a renter, expect rent prices to remain firm and even elevated from present levels in 2023, as housing shortages persist across the nation. Mortgage rates should remain near current levels–perhaps slightly higher or lower, with many experts predicting 30-year fixed rates to be in a 6 - 7% range in 2023. If You’re Looking to Sell The general consensus theme so far is to expect normalcy in 2023 amid price moderation and fewer transactions. Proper pricing and attractive terms will be key to attracting buyers and closing transactions. 2023 should still be a fluid market for sellers, as inventories remain low currently. That said, inventory levels could rise later in the year, according to the National Association of Realtors. Buyers will likely seek value and terms such as closing cost assistance and smaller down payments, especially first-time homebuyers financing via FHA loans.

It's currently expected that the overall market will sway in favor of buyers as the year goes on, with mortgage interest rates impacting affordability.

As always, and perhaps more prevalently in 2023, market conditions will be highly localized, with the supply and demand picture varying from region to region. (That's where knowledgeable local realtors like me can offer unique insight!) Housing Affordability & Multifamily

A quick note on affordability. Now more than ever, there seems to be a trend toward multi-family homes for seasoned individual buyers and even first-time home buyers. This can be a very good decision, as it can help build equity and wealth over time while lowering monthly out-of-pocket expenses. Depending on a variety of factors, it could be worth consideration. This is especially true given that many commercial multi-family ventures are heading to the sidelines amid higher interest rates; this could give individual buyers an opportunity.

Multi-family values have held more firmly versus their single-family counterparts, as rents have generally remained elevated.

The Takeaway 2022 was a year of a shifting residential real estate market courtesy of higher interest rates. In 2023, experts expect a more normalized market with fewer transactions and mortgage interest rates close to current levels.

With that said, if you’re looking for a trusted advisor to offer guidance on our area's specific real estate landscape and the best ways to navigate it as a buyer or seller, I’d be happy to help. Give me a call, and let’s talk.

Comments (1)

Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Good info and important to reassure buyers and sellers that the sky is not falling despite what they may hear 

Jan 27, 2023 08:01 AM