What will 2023 bring to the housing market??

As we look ahead to 2023, the housing market is expected to be influenced by the state of the wider economy. Experts are optimistic that, even if there is an economic downturn, it may be possible to avoid a deep recession. This could bring more stability to the housing market, which has seen significant fluctuations in recent years.

One key trend to watch in 2023 is the expected slowdown in home sales. Low inventory, high home prices and comparatively high mortgage rates are all contributing factors to this trend. Sales are likely to remain sluggish in the early part of the year before picking up in the latter half. The size of the decline in sales is uncertain, with estimates ranging from 7% year-on-year according to the National Association of Realtors (NAR) to 16% according to Redfin. The determining factors for the extent of the slowdown include mortgage rates, housing supply and overall economic conditions.

Mortgage rates are expected to edge lower in 2023, with some experts predicting a rate of around 5.5% by the end of the year. High mortgage rates, combined with high home prices, have made home purchases less affordable in recent months. Any improvement in rates will be welcomed by buyers.

In terms of home prices, experts are divided on whether we will see moderate price growth or a slight decline. The tight supply of homes on the market is likely to continue, with a lack of new construction contributing to low levels of inventory.

Overall, 2023 looks set to be a year of stability for the housing market, with less of the wild fluctuations seen in recent years. However, there are a range of factors that could impact the market, including the strength of the economy and consumer confidence. As always, it's important for buyers and sellers to stay informed about the market and be aware of the trends and factors that may affect the value of properties in their area.