Experts Forecast a Turnaround in the Housing Market in 2023

The housing market has gone through a lot of change recently, and much of that was a result of how quickly mortgage rates rose last year.

Now, as we move through 2023, there are signs things are finally going to turn around. Home price appreciation is slowing from the recent frenzy, mortgage rates are coming down, inflation is easing, and overall market activity is starting to pick up. All of that’s great news for the housing market this year. Here’s what experts are saying.

Cristian deRitis, Deputy Chief Economist, Moody’s Analytics:

“The current state of the housing market is that it is certainly in transition.”

According to Cristian Deritis, Deputy Chief Economist at Moody’s Analytics, the current state of the housing market is “in transition.” This means that there are changes occurring in the market that are shaping its future direction. As we move into 2023, the transition in the housing market could bring new opportunities and challenges for buyers and sellers alike.

Susan Wachter, Professor of Real Estate and Finance, University of Pennsylvania’s Wharton School:

“Housing is going to ease up. I think 2023 will be a turnaround year.”

Susan Wachter, Professor of Real Estate and Finance at the University of Pennsylvania’s Wharton School, is optimistic about the future of the housing market. Wachter predicts that 2023 will be a “turnaround year” for housing.

Lawrence Yun, Chief Economist, National Association of Realtors (NAR):

“Mortgage rates have fallen in the recent past weeks, so I’m very hopeful that the worst in home sales is probably coming to an end.”

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), believes that recent decreases in mortgage rates could be a sign that the worst in home sales is finally coming to an end. As mortgage rates continue to trend lower, it could make it easier for buyers to secure financing and purchase a home. This, in turn, could increase demand and boost the overall housing market.

Robert Dietz, Chief Economist and Senior Vice President, National Association of Home Builders (NAHB):

“. . . it appears a turning point for housing lies ahead. In the coming quarters, single-family home building will rise off of cycle lows as mortgage rates are expected to trend lower and boost housing affordability.”

Robert Dietz, Chief Economist and Senior Vice President at the National Association of Home Builders (NAHB), shares Yun’s optimism. Dietz predicts that single-family home building will rise in the coming quarters as mortgage rates continue to trend lower and make housing more affordable for buyers. This increase in homebuilding could help to ease the current housing shortage and make it easier for buyers to find a home that meets their needs.

Bottom Line

Experts agree that the housing market is in a state of transition and that 2023 could be a turning point for the market. Whether you’re a buyer or a seller, it’s important to stay informed about the latest trends and changes in the housing market to make informed decisions. If you’re considering making a move in 2023, be sure to reach out to us for the latest market updates and to discuss your options.