With the holiday season wrapping up, what’s to be expected in 2023 for the housing market?
The NAR (National Association of Realtors) reported that interest rates doubled from the 3rd quarter of 2021 to the 3rd quarter of 2022, ringing the average rate for a 30 year fixed from 2.9 to 6%.
That is forecasted to remain pretty consistent throughout 2023 fluctuating between 6-6.6 throughout the year and finishing 2023 right around 6%. While the buyer pool is still very strong, these rates of course have affected the number of homes sold throughout the year. This decline started just under 5% in Q1 and rose to almost 10% in Q2. The decline I number of homes sold per month is expected to be almost 25% once the year end numbers are in.
The good news is that the forecasted numbers are expected to improve over 2023 and the NAR suggests we will see a positive number by the end of 2023 with an almost 5% increase. New construction and multi family units sold are expected to follow a similar trend throughout 2023 as well.
How will this change affect home sale prices? Well yes as you may have guessed, likely in a similar pattern. While home sale prices have been increasing fairly drastically (20% in a lot of cases YOY) since 2019, the beginning of 2022 started with prices almost 15% over last years and as we closed out Q3 we were seeing prices that were only about 8% more than last year. That percentage is forecasted to continue to drop throughout the year and we’re expected to see no more than a 2% price increase over last year as we finish out 2023.
That’s a lot of numbers to roll around in your head and unfortunately, I don’t have a crystal ball to predict the future. I do think it will be a more balanced market and while prices will still remain at all-time highs, there will be more room for negotiation and contingencies and some of the pressure of the previous years will be reduced. If you’re thinking of selling it’s best to get the advice of a professional realtor and your accountant, having the right team is always the safest best having experts work on your behalf is absolutely in your best interest. Cheers to an amazing 2023 ahead!
For more market updates, feel free to reach out: email- [email protected] Instagram @lisashawsells or call me at 508-826-7661.
You can also check out the details online at www.mymasshome.org. Bottom line is that’s it’s a new season in the real estate market and changes are happening. Nothing that will stop people from buying and selling just different ways to do it. Please feel free to email or call me with any questions you may have, [email protected] 508 826-7661.