Monday Market Update: A Year of Return To Normalcy?
Experts predict rates to stabilize and home prices to moderate in 2023.
The Bobbi Decker Team hopes that your new year is starting off just as you hoped with all the potential to drive your dreams where you want to be. After a huge market shift in 2022, homeowners, renters and industry members alike are talking about what 2023 could bring. We wanted to share some insightful highlights from an article published by Realtor® Magazine just 3 weeks ago. We encourage you to read “2023 Real Estate Forecast: Market to Regain Normalcy” in full for more detail.
The read begins by summarizing that “…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.”
- Housing inventory is expected to remain tight in 2023
- Homebuyer activity is likely to see an uptick as rates recede from the 7% range at the end of last year
- NAR® Chief Economist Lawrence Yun actually believes that mortgage rates have already peaked
- The amount of home sales is expected to decrease by 6.8% compared to 2022
- Home prices are expected to stabilize nationally– marked by small price gains in ½ the country and small declines in the other ½
- Realtor.com® Chief Economist Danielle Hale projects an overall 5.4% increase in existing-home prices for 2023, though she believes some months of the year could experience year-over-year declines
- New housing starts could drop by double digits in 2023 (labor shortages, material costs, builder lending issues) and then return from that ‘slump’ in 2024
- Sellers are expected to endure an adjustment period of 4 months (Q1 of 2023) to fully ‘digest’ that negotiations, concessions and contingencies are back on the buyer side
Does any of this surprise you? Excite? Inspire you to adjust your strategy? We know that the only thing that matters is what you need and what you do next about it! We hope this update empowers you in what questions to ask and what trends to follow in 2023.
Best wishes in all that you do this year,
Bobbi Decker
DRE#00607999
Broker Associate, Bobbi Decker & Associates
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
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