Source: The Week —
Amid peaking prices due to inflation and murmurs of an upcoming recession, you might be wondering: What’s up with the housing market for 2023? Mortgage rates started to decline in the final weeks of 2022, and demand for housing is similarly expected to fall in the new year. Price growth is also expected to cool — though by how much remains unclear. Whether you’re a hopeful buyer or seller in 2023, or just someone who likes to keep tabs on the housing market, here’s a closer look at what to expect this year.
Where are housing prices headed in 2023?
Expect to see home prices continue to decline in 2023 from their recent record highs. Whether that cool-off will be a slow descent or a sudden drop is up for debate. Per Forbes, “[t]here are mixed signals from economists about if and when the housing market will crash, or if it will simply ‘correct’ itself from the double-digit percentage jumps seen in home prices the past year.”
What about mortgage rates?
As many potential homebuyers are likely well aware, mortgage rates shot sky-high in 2022 as the Federal Reserve hiked rates in an effort to control inflation. But toward the end of 2022, rates finally started to decline — and it’s expected that trend could continue in 2023.
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