Is there a Turnaround in the 2023 Housing Market?

by Tim Vicsik RE/MAX 100

Over the past few years, the housing market has gone through a lot of changes. The majority of that was a result of how quickly mortgage rates rose last year.

However, as we now move through 2023 there are signs that the market is finally going to turn around. Home price appreciation is finally slowing from the recent low-inventory-induced feeding frenzy. Plus, mortgage rates are coming down, inflation is easing, and overall market activity is starting to pick up yet again. All of that’s great news for the housing market, and very much needed as we simply cannot sustain the recent pricing trajectory. Here’s what experts are saying.

Cristian deRitis, Deputy Chief Economist, Moody’s Analytics:
“The current state of the housing market is that it is certainly in transition.”
Susan Wachter, Professor of Real Estate and Finance, University of Pennsylvania’s Wharton School:
“Housing is going to ease up. I think 2023 will be a turnaround year.”
Lawrence Yun, Chief Economist, National Association of Realtors (NAR):
“Mortgage rates have fallen in the recent past weeks, so I’m very hopeful that the worst in home sales is probably coming to an end.”
Robert Dietz, Chief Economist and Senior Vice President, National Association of Home Builders (NAHB):
“. . . it appears a turning point for housing lies ahead. In the coming quarters, single-family home building will rise off of cycle lows as mortgage rates are expected to trend lower and boost housing affordability.”

Bottom line… If you’ve been holding off for home prices to “come back down” you’re in for a long wait. If you’re willing to pay a slightly higher rate but NOT compete with dozens of offers, odds are you’ll save money buying a home in 2023!