The median US home price rose by $46,700 between January 2021 and January 2022. With real estate and housing being such a big part of so many people’s lives, predicting the trends in the housing market is vital to many of us.
Whether it understands inventory, the housing market, or where the best growth will be, you need to know what to expect in the coming year. If you’re looking ahead on the flow of the real estate market in your area, there’s no better place to start than the real estate predictions for the coming year.
Here are the top real estate predictions for 2023 to look out for.
1. It’s Going to Be a Seller’s Market
There is an increasing demand for property while the supply of homes remains static. One of the top housing market predictions is that prices will likely continue to rise as buyers compete for the limited number of available properties.
If you are considering selling your home in the next few years, now is the time to start preparing. Make sure your home is in good condition and start marketing it to potential buyers. You may even want to consider hiring a real estate agent to help you get the best possible price for your home.
Contact your local realtor for more information on the real estate market in 2023. Visit Lake Keowee realty if you want to sell or buy a house on a quality platform. Make sure to deal with an expert to get their advice on the latest housing trends.
2. Higher Mortgage Rates
It will be especially true if the economy continues to strengthen as predicted. However, even if the economy slows down, mortgage rates are still expected to rise. The Federal Reserve has said they plan to keep interest rates low for the foreseeable future.
As mortgage rates increase, so does the cost of borrowing money to buy a home. It makes it more difficult for first-time home-buyers and lower-income buyers to afford a home.
3. More Interested Home-Buyers
With more buyers interested in purchasing a home, prices will increase. The median home price will reach $347,000 in 2023, a 5.4% increase from 2020. According to the National Association of Realtors, this will be the sixth consecutive year of price growth.
With limited inventory and high demand, competition among buyers will also be fierce. As a result, many buyers are expected to compromise on their dream homes to win a bidding war.
4. Inflation Rates
As prices increase for everyday goods and services, so will the prices when buying a house. It will cause more people to enter the rental market and compete for a limited number of units, driving up prices even more.
Another trend we’ll see is people moving out of big cities and into smaller towns and rural areas. It has been happening for a few years now as people seek more space and a slower pace of life. We expect this to continue as the Millennial and Gen Z generations enter their 30s and start families.
Find Real Estate Predictions and Trends to Maximize Your Investments in 2023
If you’re considering buying a home in 2023, be prepared for prices to continue rising. However, there are still some good real estate predictions and deals to look out for.
With interest rates expected to stay low, now is a great time to start looking for your dream home. Contact a real estate agent today to get started.
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