Expert Views on the Housing Market in 2023

A HousingWire article offers the following perspective:

If you’re looking to buy or sell a home in the near future, you’ll want to know what the housing market will be like this year. 2022 saw a significant shift in the market as economic uncertainty and rising mortgage rates reduced buyer demand, slowed the pace of home sales and eased home prices, But what about 2023?

“The red-hot housing market of the past 2 ½ years was characterized by sub-three percent mortgage rates, fast-paced bidding wars and record-low inventory. But more recently, market conditions have done an about-face. . . . now is the opportunity for everyone to become re-educated about what a ‘typical’ housing market looks like.”

Experts agree that the housing market will look more stable and predictable this year as inflation continues to moderate and mortgage rates stabilize. Here’s what they have to say.

His 2023 forecast for the National Association of Realtors (NAR) states:

“While 2022 may be remembered as a year of housing volatility, 2023 likely will become a year of long-lost normalcy returning to the market, . . . mortgage rates are expected to stabilize while home sales and prices moderate after recent highs, . . .”

Danielle Hale, Chief Economist at realtor.com :

“. . . buyers will not face the extreme competition that was commonplace over the past few years.”

NAR chief economist Lawrence Yun said house prices vary by region, but remain neutral across the country as the market continues to adjust:

“After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines.”

Mark Fleming, Chief Economist at First American, says:

“The housing market, once adjusted to the new normal of higher mortgage rates, will benefit from continued strong demographic-driven demand relative to an overall, long-run shortage of supply.”