A look ahead at 2023’s housing market
What’s in store for the year ahead? Here’s what experts have to say about the 2023 housing market.
Here’s a recap:
- Mortgage rates are anticipated to be the driving factor of the 2023 housing market. As inflation has begun to ease, mortgage rates have also started to decrease from their former highs. Lower rates promote housing affordability.
- Another silver lining? More housing inventory is expected. Realtor.com®’s Housing Forecast shows that while homebuying costs might not change significantly, there may be nearly 23 percent more houses available to purchase.
- If you’re hoping to buy or sell a home this year, it’s a good idea to connect with a local Loan Officer for guidance. Market fluctuations are likely to be localized, and it may prove invaluable to have local expertise to inform your decision.
Start the year strong: Request a personalized assessment from a local Academy Loan Officer.
2023 housing market: What to know if you’re a homebuyer
As homebuyer demand has cooled, bidding wars have become a thing of the past. For homebuyers who once worried about having to pay thousands of dollars over asking price: The coast is now clear. Lessened competition could give you the chance to confidently reenter the 2023 housing market.
In addition:
- You’ll probably see contingencies come back. When the market was red-hot, many homebuyers opted to waive their inspection in order to stand out. But now, the number of buyers forgoing their inspection has dropped to around 20 percent.
- More sellers may agree to concessions. Though overall low inventory levels are still preventing a shift into a buyer’s market, today’s sellers have become much more flexible. Sellers may again offer to pay concessions—paying part of a buyer’s closing costs and other expenses—to help close a deal.
If you’re planning to buy a home this year, you may see your negotiating power increase. While some of this can depend on the supply and demand in your local area, you’re likely to find yourself with more leverage when submitting an offer than you would have a year ago.
2023 housing market: What to know if you’re a seller
Added inventory may not seem like great news if you’re hoping to sell. But having more housing supply can be helpful for the second part of your transaction—when you need to find a new home to buy.
It may help to keep in mind that:
- Whether you plan to trade up or downsize, you’ll have more listings to choose from. This is an improvement from the past few years when demand was sky-high. Though booming demand made it easy to sell, many sellers felt stuck when they couldn’t secure a new home in their price range.
- Inventory remains historically low. In fact, it hasn’t even returned to pre-pandemic levels. This means that, while more houses may be listed compared to last year, there’s a continued inventory shortage that needs correcting. If you sell now, your home should still get attention if it’s priced right.
Home prices aren’t expected to bottom out in 2023, and this benefits sellers. Sustained prices are due to low inventory levels. As a result, you could sell your home at a competitive price—and use the profits to fuel your move into a new house.
We’re here to help you decide what’s next
Is this the year you buy your first home? Or is it the year you sell and trade up to a house with more space? Whatever you envision, we’re here to help make your dreams possible. Your local Academy Loan Officer can provide you with a personalized assessment and guide you on the next steps to take.
This is for informational and educational purposes only and not intended as an advertisement as defined by Regulation Z. Please consult a trusted professional as personal circumstances may vary. No specific results are guaranteed. MAC1223-1484657.