US Housing Market Predictions: What’s to Come in 2023
Abstract
Table of Contents What Has the US Housing Market Been Like This Year? 19 Experts Predict What the US Housing Market Will Be Like in 2023 How Should Real Estate Investors Respond to These US Housing Market Predictions 2023? While the predictions of many experts were that the real estate market would crash as a result of COVID-19, it did not happen. What Has the US Housing Market Been Like This Year? Before we get into the US housing market predictions 2023, let's look at how the residential real estate market performed in 2022 and how close it came to expectations. The US Housing Market Remained a Seller's Market in 2022 Specifically, as we head towards the end of 2022 and the beginning of 2023, we're still experiencing a hot seller's market across the US. The main driver behind this has been spiking home prices. Devon Wayne, Founder and Owner of ASAP Cash Offer, says: "The US housing market is unpredictable as it's affected by many factors such as job security, inflation, market saturation, and interest rates. Nevertheless, economists predict that it will continue to grow steadily throughout 2023 as more people move to larger metropolitan areas and there is still a large amount of pent-up demand from the housing bust of 2008." Unsustainable Home Value Spikes Will Be Over When asked "Will house prices go down in 2023 USA?," experts agree that the housing market will see a cooldown. Rebecca Hidalgo Rains, CEO and Managing Broker at Integrity All Stars, says: "The outlook for the real estate market in 2023 is trending in a positive direction. Every expert in the industry that our team has talked to expects interest rates to go down next year and for the average home price to appreciate at the 4% to 5% value we are used to." Affordable Housing Will Remain a Challenge The fact that industry professionals don't expect real estate values to continue skyrocketing in 2023 doesn't mean that they will fall either, at least in the majority of housing markets. Casey Ames, Licensed Realtor at Gem State Cash Offer, explains the underlying reasons behind the ongoing lack of affordability in the US housing market: "The housing market is going to see a cooldown in 2023. Overvalued homes will lose value and return to their actual worth. But mortgage rates are going to rise which will decrease affordability. Buyers will still face challenges because of the rates." As mortgage rates are a major driver of unaffordability, experts recommend that investors look into alternative financing options like owner financing, hard money loans, and loan assumption. How Should Real Estate Investors Respond to These US Housing Market Predictions 2023? Knowing what to expect in the housing market in 2023 is one thing.