Housing Market 2023

The housing market has been on a wild ride in recent years. After a brief slowdown in 2020 due to the COVID-19 pandemic, the market rebounded with a vengeance in 2021 and 2022. Home prices soared, inventory remained low, and bidding wars were commonplace.

But the tide is starting to turn. Mortgage interest rates have been rising steadily in recent months, and that is starting to cool the housing market. In the first quarter of 2023, home sales fell by 7% year-over-year. And while home prices are still rising, they are doing so at a slower pace.

So what does the future hold for the housing market in 2023? Here are a few predictions:

• Mortgage interest rates will continue to rise. The Federal Reserve is expected to raise interest rates several more times in 2023, which will make it more expensive to borrow money. This will likely lead to further declines in home sales and slower home price growth.

• Inventory will increase. As more homeowners decide to sell their homes in response to rising interest rates, inventory levels will increase. This will give buyers more options and make it easier to find a home that fits their needs.

• The market will become more balanced. After several years of being a seller's market, the housing market is starting to become more balanced. This means that buyers will have more leverage and sellers will have to be more realistic in their expectations.

Overall, the housing market is expected to cool down in 2023. But it is still expected to be a healthy market, with home prices continuing to rise, albeit at a slower pace. If you are thinking about buying or selling a home in 2023, it is important to be aware of the current trends and to work with a qualified real estate professional to get the best possible outcome.