2023 Housing Market prediction
Housing Market 2023: Early Predictions To Know Now
What, exactly, is the 2023 housing market going to look like? It’s a difficult question to answer. Some may envision 2023 shaping up to follow in the footsteps of the 2008 subprime mortgage crisis with a possible bubble or crash.
Buyers remain cautious but fortune favors the bold
Based on birth rates, a steady influx of new buyers in their early 30s will be in the housing market each year. Despite these birth rates, Parmon said buyer demand is down. The interest rates have risen and as a result, buyers are not rushing to purchase homes.
“I am seeing buyers be extremely cautious as they navigate purchasing right now. They are fearful that prices may come down in the future,” Parmon said. “Some buyers are choosing to sit out and watch the market and see what happens moving forward.”
However, it isn’t always possible to time any market. When Parmon has seen previous buyer behavior like this, the result has been buyers watch until they realize prices haven’t dipped. Then everyone enters the market at the same time again, creating more bidding wars and price increases with the existing low inventory.
Buyers may certainly be cautious about making a purchase, but some may not be content to sit on the sidelines for another year. The adage “fortune favors the bold” could be the new mantra for those brave enough to buy.
As mentioned earlier, interest rates are anticipated to come down once we enter a recession and allow buyers to refinance at a lower rate. If you’re brave enough to buy now, Dorman said buyers will benefit from a greater inventory, less competition and the ability to negotiate repairs with sellers.
“I think it is a good time to be a buyer. Sellers are having to make more concessions to find the right buyer. There is a larger inventory of homes available,” Dorman said. “The trade-off is the high interest rate.”