What’s Ahead in the 2023 Real Estate Market Forecast

What’s Ahead in the 2023 Real Estate Market Forecast

Key Takeaways:
 
  • There’s goods news on the horizon in 2023 for home buyers and sellers
  • Look for shifts when it comes to home prices, inventory, and interest rates
  • Make a smart move by contacting us today to plan and strategize!
The Covid-19 pandemic ushered in an era of unprecedented milestones in the housing market. From the lowest interest rates in history to record amounts of equity, the last few years in the real estate market were anything but ordinary. However, as economies work on finding a middle ground, homebuyers and sellers can look forward to a much more familiar market in 2023. Let’s take a look at what we expect to see this year, so you can start thinking ahead to make your move.
 

Expect a Bright Spring for the National Real Estate Market

Coin stack on international banknotes with house and construction crane models on the table.
 
The current inflationary pressures are expected to ease, especially by the spring of 2023. Millennials are continuing to enter the housing market—many for the first time. According to Bankrate, interest rates are forecast to come down nearly two percentage points from the recent high of 7.12% to a more standard 5.25% by the end of this year. This will help fuel movement among homebuyers. And, the recent string of the housing market favoring sellers will start to wane, as slight price adjustments and an increase in inventory bring balance.
 

What Homebuyers Can Expect From This Year’s Market

Happy millennial couple receiving keys from realtor, purchasing real estate
 
Inflationary pressures are expected to ease, especially by the spring of 2023. Millennials are continuing to enter the housing market—many for the first time. Interest rates are expected to come down nearly two percentage points from the recent high of 7.12% to a more standard 5.25% by the end of this year, according to Bankrate. This will help fuel movement among homebuyers, who are also enjoying a strong job market. Despite high-profile layoffs (primarily in the technology sector) making the news, the overall unemployment rate is expected to stay at a low 3.6%.
 

What Home Sellers Can Expect From This Year’s Market

Home agent shake hand with customer after sign contract and finishes deal purchase house success
 
While the Fannie Mae Home Price Index (FNM-HPI) expects home prices to decline this year—it’s only by a modest 1.5%. While a “decline” can sound disappointing, since the Covid-19 pandemic in 2020, the median home listing price is up 27%, adding more than $9 trillion to the total value of the US housing market. And, despite the recent dip in home values, homeowners that purchased before February 2020 are still up an average of $92,000 in equity, according to real estate experts Black Knight. This provides home sellers with some flexibility in the listing price, allowing for a faster sale if you’re willing to price your home competitively. It’s important to keep the last several years in perspective to maximize those returns and put your investment to work for you.
 

Talk With Us About Your Real Estate Goals

While the real estate market is always in shift, ultimately, buying or selling a home is more about what’s right for your lifestyle each year. And with a more egalitarian market expected in 2023, both homebuyers and sellers can expect to make beneficial deals. The best way to get started is to contact us. Our team has experienced countless shifts in the market, and we’re backed by the latest data in your local area to help you find your dream home!

Work With Us

Cary Raleigh Realty is your entrusted local real estate expert team not only can assist you if you are considering buying, selling, or investing in Triangle! We will find the ideal properties for you and guide you through the whole buying or selling process. We can assist you to make the best decision based on your criteria and help you select the best ideal properties!

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