Friday, January 13, 2023 / by Laura Larson
An article from HousingWire explains the realities of this changing market: “The red-hot housing market of the past 2 ½ years was characterized by mortgage rates under 3 percent, 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.”
If inflation continues to decline and mortgage rates remain stable this year, analysts concur that the housing market may revert to being more stable and predictable. What they have to say is as follows.
The National Association of Realtors (NAR) prediction for 2023 states: “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 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.”
Partnering with Laura Larson right away is the greatest way to guarantee that you are up to date on the most recent market information if you're planning to purchase or sell a house this year.