What Will The Housing Market Do In 2023?
At Property Buyer Connect, we are always being asked our opinion on what the upcoming housing market looks like. As we near the end of 2022, many people have been asking us, “What will the housing market do in 2023?” While nobody can predict the housing market with 100% accuracy, we’ll give some of our thoughts for the 2023 housing market.
What Happened in the 2022 Housing Market?
Before we we into our thoughts on what will happen with the housing market in 2023, let’s take a brief look at what the housing market did in 2022. First off, it is important to realize how strong the housing market was in 2021 and most of 2022. With a combination of extremely low interest rates and many families opting to move into larger homes, 2021 into 2022 was one of the strongest housing markets ever. For the majority of 2022, many homes were being sold for over their asking price. While this was great for anyone who was selling their home, it was more difficult for those looking to purchase a home.
Many experts were surprised that the housing market stayed strong for such a long time. As 2022 is coming to an end, it does seem like the housing market is starting to level out. Home prices are starting to level out rather than constantly increasing like they have over the past 2 years. While Covid was certainly a factor in the housing market, there were other factors which will also have an effect on the 2023 housing market.
What Does The Housing Market Look Like For 2023?
Currently, interest rates are on the rise. Rising interest rates generally translate to a downturn in the housing market. First, current homeowners are hesitant to sell their property since they most likely will have to open a new mortgage at a higher rate than what they are currently paying. Additionally, developers are less likely to pursue new projects that would allow for more supply in the housing market. With these factors at play, right now, the housing market is at somewhat of a stalemate. The lack of supply in the market is keeping prices relatively stagnant, but most people aren’t looking to get a mortgage at the current rates if they can avoid it.
When you combine all of the different factors that go into determining what the housing market will do, it is clear that there’s no way to know for certain. In fact, most experts believed that the pandemic would cause a housing market crash. In reality, it had the opposite effect as many people looked to move into bigger houses since they were spending more time at home than ever before.
Currently, we are seeing the housing market go through a correction where prices are starting to level out a bit more. Some say this correction will lead to housing prices levelling out for most of 2023. Other experts suggest that we may see housing prices decline anywhere from 10-20% in 2023. Another important factor to consider is your specific housing market. Covid also caused a major inflation in home prices in certain localities as many people moved out of larger cities to the surrounding suburbs.
Should I Sell My House In 2023?
Again, we cannot predict exactly what the housing market will do, so be sure to do extensive research before making any major financial decisions.
Taking all factors into account, it does seem likely that 2023 may lead to a downturn in the housing market. Based on both interest rates and inflation rising, it may lead to families holding off on a home purchase. This could be beneficial if you are looking to buy a home as you may be able to negotiate a more favorable price.
If you are on the other side of the coin, and looking to sell your home, it may be beneficial to do so before the market does start to decline. One fear of many homeowners is a sudden, severe downturn in the market. In this situation, you may run into a scenario where other homeowners get into a race to lower their selling price in hopes of being more favorable to potential buyers. This is one huge benefit of working with Property Buyer Connect since we always give you a fair, cash offer for your home. You never have to worry about waiting for your home to sell while the market quickly declines.
Interested In Selling Your Property?
At Property Buyer Connect, we are experts at making the home selling process as quick and simple as possible for you. If you are interested in selling your property in Philadelphia, South Jersey, Delaware, or Lehigh Valle, we can help.
We buy all types of properties – not just homes. If you have an empty lot, squatter occupied property, commercial building, Property Buyer Connect will make you an offer. We simply give you a cash offer for your home and then take care of the rest once you approve. All of our offers are no obligation, so if you aren’t happy with our offer, you can simply let us know.