By Living Room Realty, January 11, 2023
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.
The majority of housing predictions, however, don’t believe we’re in for a huge housing disaster. GOBankingRates spoke to real estate professionals for their take on what’s to come with the 2023 housing market. Here’s what they predict could happen next.
Interest Rates Could Reach 9%
Interest rates will rise as we fight back inflation, said Melissa Dorman, broker at Living Room Realty. Historically speaking, Dorman said a 9% interest rate is not out of the realm of possibility in the 2023 housing market.
If you feel nervous at the thought of 9% interest, try not to panic. There’s not an expectation that homes will sell at outrageous percentages, like 25% over the list price, anymore, said Kim Parmon, principal broker at Living Room Realty.
“If rates continue to rise in earnest I expect we will see both low supply and lower demand, which will likely create a relatively flat market,” Parmon said.
Interest rates, Dorman predicts, are anticipated to come down once we enter a recession. Buyers brave enough to buy now will be able to refinance their homes at a lower interest rate. As interest rates fall, likely in 2023, buyers will return to the market again.
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.
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.
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