The housing market has gone through a lot of change recently. Prices ran up quickly over the last year and a half, putting home ownership out of reach for some buyers - or at least the kind of home they had wanted to buy. Then, interest rates sky rockets and the goal of home ownership moved even further away for more buyers. High interest rates and dramatically increased home values made purchasing a property in 2022 challenging for first time buyers in particular. Still, most experts did not expect a housing market crash in 2023 since so many homeowers had built up significant equity in their homes.
The good news is that nothing lasts forever. In early February 2023, there are signs things are finally going to stabilize. Home price appreciation is slowing from the recent frenzy, giving buyers a chance to make an offer on a home they like and to think a little about their offer before jumping in. Home inspections, closing concessions and longer settlements are beginning to appear, making buyers feel less assaulted by the home buying process. , Mortgage rates are slowly declining, inflation is easing, and overall market activity is starting to pick up, although we may not reach the frenzied levels of last year. All of that’s great news for the housing market this year. Here’s what experts are saying.
Cristian deRitis, Deputy Chief Economist, Moody’s Analytics:
“The current state of the housing market is that it is certainly in transition.”
Susan Wachter, Professor of Real Estate and Finance, University of Pennsylvania’s Wharton School:
“Housing is going to ease up. I think 2023 will be a turnaround year.”
Lawrence Yun, Chief Economist, National Association of Realtors (NAR):
“Mortgage rates have fallen in the recent past weeks, so I’m very hopeful that the worst in home sales is probably coming to an end.”
Robert Dietz, Chief Economist and Senior Vice President, National Association of Home Builders (NAHB):
“. . . it appears a turning point for housing lies ahead. In the coming quarters, single-family home building will rise off of cycle lows as mortgage rates are expected to trend lower and boost housing affordability.”
Bottom Line
If you’re thinking about making a move this year, a turnaround in the housing market could be exactly what you’ve been waiting for. Let’s connect to talk about the latest trends in our area.
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