If you’ve been looking to move, you probably know how crazy the market is right now. However, things may be looking up for the remainder of 2023. In March, mortgage rates fell 3.3%; the biggest fall in over a decade! More people started to look for homes to purchase. So, you might be wondering if home prices will continue to drop. Well, we can’t predict to 100% certainty, but from the research we’ve seen we feel confident sharing our Housing Market Predictions for 2023.
The Rundown
There are fewer homes for sale right now, due to the low-interest rates the country experienced in 2021 and part of 2022. In 2023, first-time home buyers will need more homes to enter the market in order to find a home in their price range.
Housing Market Outlook
Spring is typically peak buying season. Those who want to purchase this spring will likely experience a shift to a more buyer-friendlier market. Sellers will still hold a lot of cards as mortgage rates rise and affordability dips. But, sellers may have to shift their expectations to match the changing market.
In fact, we predict that we’ll start seeing a return to a more balanced market than in previous years. Buyers in 2023 might find that they can once again buy without waiving contingencies, while sellers may start to offer concessions. Since sellers still hold low-interest-rate mortgages, the are not pressed to sell quickly. Therefore, we might see them holding out for the offers they want.
Should You Buy in 2023?
The decision to buy a home is a big one, no matter what the state of the housing market at the time. Buying a home is likely one of the biggest purchases you will ever make. So, it is a good idea to not only keep an eye on the housing market, but to choose a realtor with experience and an excellent track record. I would be happy to help you determine how much you can afford, introduce you to mortgage lenders for pre-qualification, and help you calculate an estimated down payment, and navigate other costs.
In short, if you’ve been feeling priced out of the market these past few years, 2023 is the year that first-time home buyers can get back in the game and even come to the table with an FHA loan.
Rates Will Continue To Increase
Unfortunately, if you were hoping interest rate would stop climbing in 2023, that probably won’t happen. We’re seeing signs that, depending on your credit, mortgage rates will remain in the mid-6% range, and may actually climb to 8% this summer. When interest rates climb, housing prices go down! Keep in mind that over the last 40+ years, interest rates were averaging 7-7.5%. So, people became spoiled with the unsustainable low rates in recent years, which were never intended to stay for long. The good news is that buyers will have more time to think about what they want, and will likely get a better deal in 2023.
Looking to buy or sell in 2023? Give me a call or visit my website. NechelleRobinson.com | w. 443-906-3840 | m. 410-404-3889.