Why the Housing Market Remains Robust: The Surprising Factors that are Keeping it Afloat
We have all heard of the crazy market shifts recently. Mortgage rates rose dramatically last year which impacted many buyers’ ability to buy a home and after several years of rapidly rising price appreciation, home prices finally peaked late last year causing experts and headlines to say home prices would end up crashing in 2023. However, the direct opposite happened.
So, with all this going on in the market, why aren’t home prices crashing? According to Lawrence Yun, chief economist with the National Association of Realtors, and I quote “We simply do not have enough housing inventory nationwide. With the supply not being there, the repeat of a 30 percent price decline is highly unlikely.” The lack of available homes on the market is putting upward pressure on prices and simply won’t allow a price crash in the near future. This is good news for sellers as experts believe low inventory will continue throughout 2023 preventing the housing market from crashing. This also means for buyers they may still have little choice but to bid up prices to get their offer accepted.
Bottomline, the supply and demand equation will not allow for a housing crash. Of course, all markets are different, and it is best to reach out to your local real estate professional to get the current market update. With 4 decades of experience, we can help you develop the very best strategy, to realize your goals, whether you are planning on buying, selling, or BOTH! If you are planning to enter the housing market and are feeling a bit confused about what is going on, it is best to consult an experienced real estate team.
Whether you want to sell your existing home, buy your first home, upsize, downsize, purchase a vacation home, or just talk about options, a real estate professional is your best source for information based on current trends in our area. If you're interested in learning more about the 2023 real estate forecast, don't hesitate to reach out - we're happy to help!