What Does the 2023 Housing Market Look Like Now?

Real Estate Agent with Keller Williams Capital Properties DC AB15253

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.

Comments (7)

Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Lise,

Great post about the housing market re-balancing and turning around. I expect 2023 will be a good year for those who have been waiting. There is not a better time to buy!

Feb 06, 2023 08:55 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Lise, we are already seen a burst of energy in the real estate market, and hopefully will see the rates coming down later this year.

Feb 06, 2023 09:06 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Lise and I wish my Magic Eight ball would tell me what to expect for 2023 but I like what is in your blog to share with us.  Make it a great Monday!


Feb 06, 2023 09:31 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Lise... "the market is certainly in transition." Ya think? Christian deRitis got that right in a nutshell!

Feb 07, 2023 06:34 AM
Dick Betts
REALTOR® The Villages, Florida

I was just reading yesterday how experts now think we are close to the bottom and not as bad as they thought would happen!  Hope all is well!

Feb 07, 2023 08:29 AM
Roy Kelley
Retired - Gaithersburg, MD

This is a good report to share.

Have a great day and an outstanding weekend.

Feb 10, 2023 07:24 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great post!  Thanks for sharing and enjoy your day!

Feb 11, 2023 06:47 AM