2023 Market Predictions
Only a few weeks into the new year and we are already beginning to see a shift in the market. And, the thing about real estate is that it always ebbs and flows, one minute sellers are on top and the next buyers are in the driver’s seat.
The two main things on everyone’s minds right now are interest rates and home prices. Buyers are wondering if and when interest rates will come back down. For sellers, they are waiting for the market to take a turn in their favor where home prices will spike and demand will be back.
Luckily there are experts who are able to predict what those ebbs and flows may look like for the upcoming year ahead. In a recent article from Keeping Current Matters, they discuss both interest rates and home prices and how that will affect our 2023 real estate market.
Here are the main takeaways:
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 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.” - HousingWire
“Buyers will not face the extreme competition that was commonplace over the past few years.” - Danielle Hale, Chief Economist at realtor.com
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, . . .”
On home prices, Lawrence Yun, Chief Economist at NAR, explains “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.”
“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.” - Mark Fleming, Chief Economist at First American
As far as interest rates go, here is what they are predicting:
Image from Keeping Current Matters
If you have any questions about the current real estate market in Longmont or the surrounding areas please do not hesitate to reach out. Buying or selling a home does not have to be a painful and daunting experience, and I am here to help in whatever you may need.
