While it might be hard to believe that it’s already 2023, the housing market is already on its own trajectory. The past several years have certainly been interesting. Between the COVID-19 outbreak, the ups and downs of the economy, and everything else in between, people have been on their toes about buying and selling their homes. If you can relate as someone who has been considering partaking in either buying a home or selling one, it’s important to pay attention to the predictions that experts in the industry have been making for 2023. Here’s a summary of these predictions.
Home Sales Will Continue to Slow Down
It’s no surprise that the housing market was hot over the past few years, and most parts of the country were in a seller’s market. While home sales are still going to proceed at a quick rate, it won’t be nearly as rapid. This will decrease the level of competition between buyers, offering a reprieve to those who have been struggling to land an offer on a home. However, if you are considering selling your home, you’ll still likely be able to do so easily.
There Will Continue to be a Housing Inventory Lag
Since the beginning of the pandemic, there have been issues with housing inventory. Due to supply chain issues instigated by COVID-19 and other things, there was a large discrepancy between the amount of houses that were being built and the amount that were needed. Simply put, the world hasn’t been able to catch up. There are a lot of reasons since the pandemic that have prevented the country from bouncing back, and this will continue through 2023.
Mortgage Rates Will Lower
Mortgage rates during the pandemic dropped to a historical low. Since then, they have climbed to a high point due to the government’s attempt to curtail inflation. Now, to many people’s relief, they are beginning to lower again. Economists predict that in 2023, the rates will continue to decrease, albeit slowly. If you’re considering buying a house, keep an eye on mortgage interest rates as you will likely be able to get a better deal than you would have last year.
House Prices Will Plateau
Another win for those who want to buy a house is the fact that home prices in the country will eventually plateau. The costs of homes in the country have been consistently rising, oftentimes at an exponential level. Luckily, the prices are predicted to slow down and plateau. This is just another reason for those who have been holding off on buying a home to make the dive into the process!
In 2023, those who have been wanting to buy a home have held off might find some reasons to take the plunge. Not only have mortgage interest rates and home prices lowered, but the competition is also slowing down as well. Be sure to hire a Realtor before you buy a house to make sure you’re able to get the best deal possible. One thing to keep in mind, however, is that the housing inventory isn’t looking like it’s going to get caught up!