The real estate market is always in a state of flux, and 2023 is shaping up to be no different. In this blog, we will take a look at the major trends and predictions for the coming year to help you make informed decisions about buying, selling, or investing in real estate.
Price Increase: According to industry experts, existing home prices are expected to see a 5.4% increase in 2023. While this is slower than the previous year, it still represents growth and is a positive sign for the market. It is important to note that this growth is expected to be half of what it was in 2022, indicating a cooling of the market.
Mortgage Rates: The good news for buyers is that mortgage rates are predicted to fluctuate very little in 2023. This stability in interest rates can provide a sense of security for those looking to purchase a home, as they can budget accordingly.
Housing Shortage: Despite the slight slowdown in price growth, housing shortage conditions are still expected to be present in the market. This is due to high demand and limited supply, and it is likely to drive prices higher.
Builder Confidence: Unfortunately, builder confidence has fallen over the last 11 months due to a number of factors, including labor shortages, higher material costs, and lending issues. However, despite this, build-to-rent is expected to be a trend in 2023, as more developers look to meet the high demand for rental properties.
In conclusion, the real estate market in 2023 is expected to be characterized by a modest increase in existing home prices, stability in mortgage rates, a continued housing shortage, and a shift towards build-to-rent. Understanding these trends can help you make informed decisions about buying, selling, or investing in real estate this year. Keep an eye out for more updates and insights on the real estate market, right here on our website.