After a whirlwind market in 2020 and 2021 where sellers were on top with multiple offers, all cash, and bidding wars we finally saw a shift in 2022. This was largely due to the rising interest rates, home prices leveling off, and inflation. And this has been good for buyers.
Now, as we enter 2023, many are wondering if we will be seeing more of the same with continued opportunities for buyers, or will we see another shift.
One thing both buyers and sellers are hoping for is for the Fed to bring down inflation and provide more stability in the market.
Interest rates have been on everyone’s mind as we’ve seen them more than double in the last year. Here are 2023 mortgage rate predictions:
If we see that drop in inflation that we are all hoping for, we should see a drop in interest rates as well.
As far as home prices go, what can we expect? If interest rates drop will we see another rise in prices, or will things stay level? Here is what the experts are predicting:
According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR): “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.”
No matter what we predict, the bottom line is that the 2023 housing market with be defined by inflation and interest rates. If you’ve been thinking about buying or selling, your best option forward is to work with an experienced and knowledgeable realtor who can help you navigate the unknown and ever-changing market.