The good news is that the housing market is expected to remain strong throughout 2023, with home prices continuing to increase modestly as demand remains high and inventory remains low. This is due to several key factors, such as an increase in job growth, an improving economy, low mortgage rates, and a resurgence in consumer confidence. Although home price appreciation may be lower than in previous years, the market is still very attractive for those looking to buy or sell a home. As more buyers enter the market, we may also see a pick-up in remodeling and construction activity, which can help support the housing market and drive prices higher. Ultimately, the outlook for 2023 is positive, with the housing market expected to remain stable and healthy.

An article from HousingWire offers this perspective:

“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.”

This year, 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 2023 forecast from the 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, . . .”

Danielle Hale, Chief Economist at realtor.com, 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.” 

Bottom Line

I would be more than happy to help you with your real estate needs this year. With my experience in the market and research-driven approach, I can help you make the best real estate decisions. Additionally, my expertise and connections in the market will give you the best negotiating advantage. If you’d like to discuss this further, please don’t hesitate to contact me. I’d be more than happy to answer any of your questions and provide you with more information.