Source: Insider —
The home buying frenzy that took place throughout much of the pandemic drove the nation’s home prices to historic highs, further escalating the country’s ongoing housing shortage and affordability crisis.
But as inflation eases, bolstering expectations that the Federal Reserve will ease its monetary policy, there is hope that normalcy may finally return to the broader US housing market in 2023.
Robert Dietz, the chief economist and senior vice president of the National Association of Homebuilders, predicted that lower interest rates will encourage builders to construct more single-family homes this year — which should ultimately increase buyer demand.
“While NAHB is forecasting a decline for single-family starts this year compared to 2022, it appears a turning point for housing lies ahead,” Dietz said in January’s Housing Market Index. “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.”
