What Will 2023’s Housing Market Look Like?
These are my best predictions for the future of our housing market.
Believe it or not, we’re almost at the end of the year. As we get closer, one question that I'm getting frequently is: “What should we expect for next year?” While I don't have a crystal ball, I do have historical information and facts that should explain where things are most likely heading.
Unfortunately, mortgage rates have gone up tremendously this year, which has drastically affected the market. It’s hard to believe now, but back in January, rates were in the 3% range. Recently, rates got as high as the 7% range, but they’ve come down a little bit to the high 6% range.
It looks like we're getting some stability with rates, but since interest rates doubled, which has never happened before in just a year, our market is still slowing. Therefore, we're in uncharted territory with interest rates, and that is reflected in the housing market.
Currently, buyers and sellers are trying to decide if they should stay in the market or not. I always recommend that if it makes sense for you to move, you should move. Plus, now is a good time to buy a home—you are now able to shop for properties and you can keep all of your rights with home inspections and other concessions.
"We're in uncharted territory with interest rates, and that is reflected in the housing market."
For my sellers, when deciding whether or not you should put your house on the market, you have to look at your finances and make sure you have the proper price. We can help you do a hard price analysis so you can make an informed pricing decision.
Finally, some people are predicting a recession in the near future. This may sound bad, but it isn’t necessarily bad news for the housing market. Interest rates traditionally fall during recessions, so that could be the jump our market needs.
Again, none of these predictions are final. If you’d like a more detailed analysis of your situation, please call or email me. I’d love to talk with you!