Source: MarketWatch —
When the weather cools for winter, the housing market often does too. But is that true of the market right now — and what should we expect for the rest of the season and the year? We asked real estate experts and economists to share their predictions. (See the lowest mortgage rates you may get now here.)
Prediction 1: Home price cooling will continue until the spring selling season picks up
“Home prices continued to ease down gently through the end of the year across the US — a product of both normal seasonal cooling and still very challenging affordability conditions. The fastest cooling markets include expensive West Coast metros such as Seattle and San Diego, and Southwest metro [areas] that saw strong growth over the pandemic, including Dallas, Austin and Phoenix. We anticipate this trend to continue in January, before the typical spring selling season picks up,” says Zillow senior economist Nicole Bachaud.
Prediction 2: Seller concessions are making a comeback — and sellers are now far more willing now to lower their prices
“With affordability concerns pushing buyers out of the market, seller concessions are making a comeback,” says Kate Wood, home expert at NerdWallet. “January isn’t typically a strong month for home sales, but the beginning of the new year could be significant for homeowners weighing the decision to sell in 2023.” That said, she adds: Without a fresh crop of new listings, home prices are more likely to remain high.”
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