News on the Market! What are the real estate projections for 2023? It is always nice to hear what the professionals think is going to happen in the new year. Here are some predictions from the Chief Economist with the National Association of Realtors. Mr. Lawrence Yun. The predictions are most favorable for buyers. There is one prediction that will be one tough pill for buyers to swallow. No one is predicting that we will be going back to three percent interest rate for a fixed rate mortgage. Mr. Yun instead predicted that interest rates will be around 5-5.5%. This is lower than the peak that we saw in the final quarter of 2022. This was when interest rates for a fixed rate mortgage were at seven to seven and a half.
Real Estate Projections 2023: The Good News
Some good news for buyers is the prediction that includes a slowing nationwide in the price growth. Buyers will have longer to think about buying a particular home with homes taking longer to sell. It is also likely that fewer homes will come up for sale. This means that buyers will have fewer homes to choose from but that is good news for sellers in that there will be less competition in the market.
New Construction Projections
The news regarding new home construction is that the demand is not keeping up with the supply of new homes nationwide. This means that prices will be going up. Also, the cost of construction is predicted to be up 14 percent over last year. There are still problems with supply chains. The items that builders are struggling to get changed but there always seems to be something that is slowing the process. Last year’s appliance issues have changed to garage doors in the new year. With the demand for new homes outpacing supply the value should be in existing homes rather than new.
The new year brings a few positives for sellers but buyers appear to be getting the upper hand in the housing market. This will be a refreshing change for buyers. With price appreciation slowing more buyers may see it possible for them to try to buy!
Those are the real estate projections for 2023. If you are ready to step in the market, whether you are a buyer or a seller, contact us to get more information and the latest on the market and how it affects you. Lestel Meade, Century 21 Elevated Real Estate, 970-310-8379