The US real estate market is in a constant state of flux, and in the first quarter of 2023, it's likely no different. The market conditions can change quickly from month to month. Hence, it is important to be aware of the trends that real estate professionals are predicting for this coming months. This article will explore the current state of the US real estate market in 2023. We will provide an overview of what potential buyers and sellers can expect.
The market remains competitive.
Despite the uncertainties of 2022, it looks like buying and selling a home is still very much in play. The market remains competitive for homes that are attractively priced, but increased mortgage rates and worries about recession have tempered activity from its springtime peak. A moderate increase in house prices is anticipated as demand slightly surpasses supply. However, fears of an impending housing crash similar to the Great Depression have been allayed by experts.
Strict conditions in the housing market are unprecedented.
With the US housing market at a historically tight stage, economists and experts in related industries can't agree on its future trajectory for 2023. Some believe it will drop as much as 20%, while others believe there won't be any decrease. There are few who foresees that market may even increase by up to 4%. KPMG LLP is forecasting significant losses of about 20% between 2022-2023. Goldman Sachs and Wells Fargo estimate put those figures closer to 7.5% - 5.5%. Mortgage supporters Freddie Mac and Fannie Mae are still relatively pessimistic. Their predictions are below 0.
Mortgage Bankers Association has made an opposite forecast based on anticipation of growth ranging from 0-7%! There are more optimistic predictions ranging up to 5.4%, according to Realtor.com forecasts! Meanwhile, CoreLogic expects an impressive 4.1% increase. Home LLC believes there will be a milder but still noteworthy jump of 4%. The National Association of Realtors cautiously predicts only 1.2%. Nevertheless - all signs point towards continuing growth in the realty industry overall!
Progress in the South has been steady.
The National Association of Realtors predicts that the South is on track to be a hub for real estate activity in 2023 and beyond. 4.78 million existing homes are expected to be sold. This number is 6.8% less compared to 2022. Prices will remain fairly constant - only seeing minor increases or decreases depending on location around the country. Atlanta will take its place at the top of NAR's housing market list along with Raleigh, Dallas, Fayetteville (Arkansas), and Greenville (South Carolina). The median home price across America is forecasted to reach $385,800. This equates to an increase of just 0.3% compared to this year ($384,500).
Final Thoughts
The US real estate market in 2023 is likely to remain competitive and volatile - though not as drastically so as it was in 2021. As buyers, sellers, and industry watchers alike attempt to make sense of the current market climate, all eyes will be on the trends, forecasts, and predictions that are established throughout this coming year. With interest rates being high and the market staying competitive, it is likely that buyers and sellers alike will need to prepare for a significant investment if they intend to enter the real estate market in 2023. All things considered, it appears that the near future of US real estate remains bright - with prices forecasted to hold steady and no major corrections expected. With this knowledge in hand, potential homeowners can begin mapping out their purchases and investments with confidence.
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