Is the 2023 real estate market poised for a positive outlook?

As we entered 2023, the U.S. housing market showed signs of a more positive outlook, but recent mortgage rate fluctuations have highlighted the lingering uncertainty that still looms over the market. Despite this, the persistent shortage of available homes for sale will likely result in only modest price declines, with projections indicating that these declines will peak at 3% from the highest point to the lowest point.

As a real estate broker and top agent at Avant One Real Estate, I have seen firsthand how this shortage of inventory has affected the housing market. The lack of available homes has created a highly competitive market, with bidding wars becoming commonplace and prices soaring to unprecedented levels.

However, with the recent surge in mortgage rates, there is now an increased level of caution among buyers, and this may lead to a more balanced market in the coming months. While we cannot predict with certainty how the market will evolve, the current trends suggest that we may see more moderate price increases as we move forward.

It is worth noting that while the housing market is currently facing challenges, it is still an excellent time for buyers to invest in their dream homes. Mortgage rates are still historically low, and the continued shortage of inventory means that homes are selling fast, making it essential to act quickly.

As a real estate professional, my advice to buyers is to work with an experienced agent who can guide them through the intricacies of the market and help them make informed decisions. For sellers, now is an excellent time to list their homes, as the demand for homes is still strong, and competition among buyers is likely to remain high.

While 2023 has brought some optimism to the U.S. housing market, there is still a great deal of uncertainty. Nevertheless, the current shortage of inventory is likely to keep price declines modest, and the market remains an excellent opportunity for both buyers and sellers. As always, it is essential to work with an experienced real estate agent who can provide guidance and support throughout the buying or selling process.

Additionally, every quarter, Pulsenomics surveys a panel of over 100 economists, investment strategists, and housing market analysts regarding their five-year expectations for future home prices in the United States. Here’s what they said most recently:

So, given this information and what experts are saying about home prices, the question you might be asking is: should I buy a home this spring? Here are three reasons you should consider making a move:

1. Buying a home helps you escape the cycle of rising rents. Over the past several decades, the median price of rent has risen consistently. The bottom line is, rent is going up.
2. Homeownership is a hedge against inflation. A key advantage of homeownership is that it’s one of the best hedges against inflation. When you buy a home with a fixed-rate mortgage, you secure your housing payment, so it won’t go up like it would if you rent.
3. Homeownership is a powerful wealth-building tool. The average net worth of a homeowner is $255,000 compared to $6,300 for a renter.

Experts are projecting slight price depreciation in the housing market this year, followed by steady appreciation. Given that, you may be wondering if you should move ahead with buying a home this spring. The decision to purchase a home is best made when you do it knowing all the facts and have an expert on your side.  We are here for you.