Is the market turning around in 2023?

The experts seem to think so. Read on...

A Turnaround in the Real Estate Market is Forecast by Many Experts for 2023

We are hearing many of those in the know that they are optimistic about the housing market in 2023.

With the recent decline in mortgage rates and increased market activity, it appears that the housing market is indeed in transition and moving towards a more favorable outlook for homeowners and potential buyers. Experts believe that the decline in mortgage rates, coupled with a strong labor market and wage growth, will make homeownership more accessible and bring more buyers back to the market, particularly in the spring season.

If you're thinking about making a move in the housing market, it may be a good time to get your house ready to sell and learn about buyer demand in your area.

Here's what the 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’re thinking about making a move this year, a turnaround in the housing market could be exactly what you’ve been waiting for. Let’s connect to talk about the latest trends in our area.

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Lower Mortgage Rates Are Bringing Buyers Back to the Market

As mortgage rates rose last year, activity in the housing market slowed down. And as a result, homes started seeing fewer offers and stayed on the market longer. That meant some homeowners decided to press pause on selling.

Lately, as rates started to come down, many buyers have jumped back into the fray . In fact, the latest data from the Mortgage Bankers Association (MBA) shows mortgage applications increased last week (Feb. 9, 2023) by more than 3% compared to the week before.

If you are a homeowner who has considered selling but thought you missed your chance, this might be a good time after all. Here’s what experts are saying about buyers returning to the market as we approach spring.

Mike Fratantoni, SVP and Chief Economist, MBA:

“Mortgage rates are now at their lowest level since September 2022, and about a percentage point below the peak mortgage rate last fall. As we enter the beginning of the spring buying season, lower mortgage rates and more homes on the market will help affordability for first-time homebuyers.”

Lawrence Yun, Chief Economist, National Association of Realtors (NAR):

“The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”

Thomas LaSalvia, Senior Economist, Moody’s Analytics:

"We expect the labor market to remain robust, wages to continue to rise—maybe not at the pace that they did during the pandemic, but that will open up some opportunity for folks to enter homeownership as interest rates stabilize a bit."

Sam Khater, Chief Economist, Freddie Mac:

“Homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of Millennial renters will provide support to the purchase market.”

Bottom Line

If you have been considering selling your house, now is a great time to prepare it for the market. Let's connect so we can discuss the current demand for homes in your area and determine the optimal time to list your property.