Is 2023 the Year of the Buyer, Seller, or Both?
Now that 2022 is behind us, what are forecasters predicting for the 2023 housing market? Will it be the year of the Buyer or Seller, or BOTH?
According to Danielle Hale, Chief Economist at Realtor.com, he says, and I quote, “It is going to be a tough year overall for both buyers and sellers, but we are going to see a better balance between the two.” We feel that most of the dramatic shifts in the 2022 market will taper off.
Sellers will continue to see home prices keep climbing at a VERY moderate rate but with longer days on the market. We anticipate that sellers can expect to see home appreciation rise around 5.4% this year, which is a significant drop from previous years but not a drastic decline as initially predicted.
Homeowners should continue to see their home equity rise this year by an average of $25,000”. For Buyers, we expect that they will see more inventory of homes on the market. In fact, housing inventory is predicted to be up 22.8% from 2022, giving buyers more homes to choose from. This increase in inventory is still lower than pre-pandemic, which will also help sellers. Mortgage rates are predicted to remain high, averaging about 7.4% for most of the year, and then taper off. This could affect overall home affordability making fewer people able to buy.
Combining all these factors, it’s no wonder it could be the year for both the buyer and the seller. As always, it is best to consult your trusted real estate professional to give you the latest local market updates and insights.
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!