We’re halfway through January, so it’s time to start talking about market predictions for Q1 and the rest of the year.
While no one has a crystal ball, here’s what experts and enthusiasts see coming into view for 2023:
1. Home prices will rise, but slower than in years past. Realtor.com predicts an average increase of 5.4% nationwide.
2. Mortgage rates will hover around 7%, four percentage points higher than the historic lows of 2021.
3. Thanks to the uptick in rates, buyers will have less buying power in 2023. Some will consider creative ways to pursue homeownership, like pooling their resources to buy with friends and family, a trend experts first noticed in the spring of 2022.
4. Inventory will trail pre-pandemic levels but will be up 22.8% giving buyers more options to choose from and far less competition than in past years.
5. Homeowners in a position to do so will look to rent their low-mortgage-rate homes and step into the role of landlord. With rental rates predicted to increase faster than home values, renting out a home will be lucrative in 2023.
DM us if you want to chat about what these predictions mean if you’re looking to buy or sell in 2023. We’d love to connect!