Source: Yahoo! —
The current state of the U.S. housing market can best be described as “complicated.” Rising mortgage rates over the past year have steered many would-be buyers out of the market, leading to softer demand and declining home prices.
But prices are still historically high even after the recent dip — and mortgage rates are historically low despite more than doubling in the space of a year. These trends, combined with uncertainty over an economy that continues to outperform expectations, make it difficult to gauge where the housing market will go.
One thing for certain is that U.S. home prices have fallen from last year’s peaks. In December 2022, average home prices rose 6.9% year-over-year but fell 0.4% on a monthly basis, according to CoreLogic. In addition, Realtor.com reported that median list prices rose 8.4% year-over-year in December, though they were down 11.1% from where they were in June 2022.
Many housing experts expect the market to weaken further in 2023 — but not all do. Here’s a look at six housing trends to know this month:
1. Activity Will Pick Up in the Spring
This is one of the easiest predictions since housing markets almost always see more activity in the spring. That should be especially true this year due to a combination of factors. For one thing, mortgage rates have trended lower the last couple of months, which will have a positive effect on affordability, increase demand and “bring more buyers back into the market,” National Association of Home Builders chief economist Robert Dietz told CNBC.
Meanwhile, a rise in inventory should also bring more buyers back into the market. As CNBC noted, real estate agents have reported an earlier-than-usual surge in open-house foot traffic. Some realtors have even seen a return of bidding wars.
