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 ½ 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.”
Remember my post on perspective??
These quotes are from experts who are talking about the nation as a whole. What about Montgomery County?? We have the same elevated interest rates, but we still have extremely low inventory - if you have read my previous blog posts, you already know that the market is driven by supply and demand. The buyer pool has gotten a little smaller with the higher rates and the slower winter season - that lowers demand. However, the supply is also really low. What does that mean - well, if a house is in a high demand neighborhood, and priced fairly - it's still going to sell pretty quickly, maybe even with multiple offers. I have seen many recent examples of this. In Montgomery County, we have our own local housing market - so rely on the local experts.
If you want to sell, don't wait for the "spring market" when more competition comes, and if you are still looking to buy - get out there now and don't give up. Lenders are coming up with all sorts of creative solutions to the higher rates, including the ability to refi without all the closing costs if the rate goes down within a certain time-frame! That's huge!
Bottom Line
If you’re looking to buy or sell a home this year, or just want to know what kind of equity you've gained over the last few years, the best way to ensure you’re up to date on the latest market insights is to partner with your trusted real estate advisor. Let’s connect!
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