Housing Market Predictions for 2023
The market will remain opportunistic for those who approach the market with expert counsel and guidance and a true understanding of the advantages of homeownership. This is especially the case when you view, in proper perspective, the historic landscape of the market over the years and the true value of homeownership and wealth equity growth and preservation through real estate.
According to Lawrence Yun, chief economist for the National Association of REALTORS® (NAR), supply and demand issues will continue to keep prices elevated through the end of 2022. This trend will continue in 2023 but at lower levels. Yun added he doesn’t see a repeat of 2007–2008 or “a second real estate bubble” where home values dropped dramatically due to a variety of factors. Instead, Yun sees home values to be up or down 5% in 2023.
Even with inflation and rising mortgage rates, Yun also said it is still a good time to invest in real estate. If there is any benefit to inflation, it is those who have a long-term loan, and a mortgage is the biggest debt most people take on in their lives, per Yun.
Those that are jumping into the real estate market now, can also refinance even two years down the road when mortgage rates are more favorable. Homebuyers can find savings the longer a house is on the market. While homes nationally priced right in desirable locations will never be on the market long, and often go for well above the list price. NAR found that 51% of homes are sold at or above the list price.
