2023 Housing Market Projections: Is Home Affordability on the Horizon?
A potential housing market recovery might be in progress as mortgage rates ended lower in March and home sales prices saw a year-over-year decrease in February for the first time in nearly 11 years.
However, experts remain uncertain about future home price reductions due to the limited housing supply and tight inventory.
April 2023 Housing Market Forecast
As the spring homebuying season approaches, economists monitor the market influenced by high inflation, steep interest rates, geopolitical uncertainties, and recession fears. Promising trends include a decrease in median existing-home sales prices, a significant increase in total existing-home sales, and a 9.8% rise in housing starts in February.
Housing Inventory Outlook for April 2023
Since the 2008 housing crash, low housing inventory has persisted, and it is unlikely to recover in 2023. The ongoing housing supply shortage keeps demand high, maintaining elevated home prices. Experts predict that low inventory will continue to plague the market throughout 2023.
Housing Starts Forecast 2023
Positive signals in homebuilding include an increase in single-family construction starts and building permit applications in February. Despite low builder confidence, consecutive improvements could lead to a significant rebound in new construction. However, the Federal Reserve’s rate hikes and ongoing tightening policies may further strain inventory levels.
Will the Housing Market Crash?
Many economists predict a market correction rather than a crash due to the ongoing inventory problem. Home prices may remain steady or fluctuate depending on the region. Homeowners today have more secure footing than those in the 2008 financial crisis, making a housing market crash unlikely.
Foreclosures in 2023: An Increase?
Foreclosures remain below pre-pandemic levels even after the expiration of the Covid-19 foreclosure moratorium. The strong economy and government efforts have prevented many unnecessary foreclosures. Homeowners with positive equity are refinancing or selling their homes for a profit, a trend expected to continue in 2023.
When to Buy a Home in 2023
Deciding to buy a house depends on individual financial situations and preferences. Experts suggest purchasing a home based on budget and need rather than trying to predict market trends. Being prepared and constantly checking listings and prices can lead to success in a competitive market.
Tips for Buying in Today’s Housing Market
Flexibility and preparation are crucial for potential homebuyers. Consider relocating to lower-priced housing markets, reviewing financial situations, gathering required documents, shopping multiple lenders, and strengthening credit scores. Knowing monthly payments and budget constraints can help buyers make informed decisions.
Tips for Selling in Today’s Housing Market
Sellers should work with knowledgeable listing agents to price their homes competitively. Presenting homes in the best possible light is essential for attracting buyers. Decluttering, organizing, and cleaning can help showcase the property’s potential even if it is outdated.