It’s a brand new year! After a year of market fluctuations, many are wondering what to expect for the next 365 days. While we can’t guarantee what is to come, real estate experts can make educated guesses about the market for 2023.
Home prices are expected to drop.
Yes, more than likely, we will see a decline in home prices. This sounds great, but it doesn’t necessarily indicate a “buyers’ market” because of uncertain interest rates. If you are considering buying a home, remember that real estate pricing will vary from state to state. While I always recommend doing your own research, consult with a local real estate agent who will deeply understand the local market you’re interested in pursuing.
Interest rates are hard to predict.
With the steady increase in inflation, there are varying opinions on whether interest rates will rise or fall in 2023. Some say we might see a stall, while others predict a continued increase. According to the Fannie Mae December 2022 Housing Forecast, rates are expected to fall within the first quarter of 2023. Numerous factors, including inflation, affect mortgage rates, which is why there are differing expert opinions.
Rental prices could potentially increase.
With many younger buyers reconsidering purchasing a home due to financial limitations, the demand for rental properties will increase. Because of high demand, we should expect to see rental prices increase throughout 2023.
When researching the 2023 housing market, remember that people will always continue to buy and sell houses – regardless of home prices and interest rates. Supply and demand may fluctuate, but home sales will never stop. So don’t let the fear of uncertainty deter you from pursuing your dream home. There are many ways to make buying a home in 2023 affordable; we just have to weigh priorities and get creative.
Don’t hesitate to call me if you’re considering selling or buying a home in Pennsylvania or Maryland this year. I have decades of experience in the real estate industry, and I’m happy to answer any of your questions about the current market. Call me at 717-253-3259 (cellphone) or check out my website at www.karentavenner.com.