It’s 2023 and we are all wondering what the housing market is going to look like. Some waiting to buy with the hopes of an impending crash, while others bought anyway taking the stance that they didn’t want to take the risk. In the last quarter of 2022 the housing market slowed to a near freeze out (pun intended with this weather) and has all of us wondering….what now?
But what about Mortgage Rates?
We all know the impact the higher mortgage interest rates have had on the housing market, but what about the economy in general. Traditionally with slower growth and higher inflation the mortgage rates also move down to stimulate the economy, but because we were on such a growth trajectory. Some feel the market needed a major slowdown. Well, we got it and it’s continuing to hold.
Waiting for a foreclosure?
I received a couple of calls this week with interested buyers wanting to get on a foreclosure/short sale list. We will watch that market closely, but most experts are not expecting a large increase in homes in those categories and the reasons should not be surprising. People have equity in their homes now and lots of it. This allows them to sell their homes before they get into trouble. Also, in 2020-2022 there was a lot of cash in the market. The mortgage crisis that we saw in 2008 was not present in 2020-2022. People stuck to what they could afford with mortgages that made sense.
What about Inventory?
Inventory is still at an all time low. This helps houses sell as there are still buyers who need homes. With accurate pricing a home should still sell rather quickly in this market. Redfin forecasts about 4.3 million in home sales in 2023, which is fewer home sales than in any year since 2011 and a decrease of 16% year over year. Taylor Marr of Redfin also expects the median US home sale price to drop by 4% in 2023 over last year making homes more affordable. The pandemic homebuying boom though raised the prices so much, that the typical home buyer monthly payment will be about 63% higher in 2023 than it was in 2019.
What does this all mean?
Foreclosures and short sales are not likely. A small overall price decrease is expected but inventory will keep that in check. It’s still a great time to buy…especially if you are looking for a long-term investment. When you are ready to move forward, let’s connect.
Call MeriAnn Boxall at (435) 491-0313 to look for your future home! Click “here” to search properties and “here” to estimate your home value.
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