The housing market continues to fluctuate every year, which can be particularly frustrating for those looking to buy or rent. This article will look at a number of forecasted trends that we’re expecting to see in 2023.
Sales will slide
The increase of mortgage rates and monthly payments has had a hugely negative impact on the housing market. The continuation of this across the next year will likely see sales slide, with housing prices still on the up.
However, this time period offers the perfect opportunity to start building up your credit score whilst you’re renting if you’re looking to buy in the future. There are a number of things you can do to help this, including paying bills on time, clearing debts and using a credit-building credit card.
States will differ
Of course, the housing market will differ depending on which state you live in. However, experts believe that the US will see an overall market decline in 2023, with others believing that prices will continue to rocket.
The regional markets expecting to see house prices drop include Colorado, Iowa, Alaska, North Dakota and California. Alternatively, those expecting to see rising house prices are Texas, Washington, Montana, Tennessee and New York.
Following the fallout of the Coronavirus pandemic, it’s said that the US housing market is going through a “reset” period as it tries to get back on its feet.
Tackling record inflation levels and trying to keep up with market demand and the economy has a huge impact on prices. The amount of people borrowing money increased rapidly, translating to a spike in mortgage rates overall.
To keep the market stable, the housing market has to hike up prices across the board to keep things looking healthy and whilst trying to stay afloat.
Shifts in behavior
It’s hard to pinpoint exactly what will happen in the next year. The current market is making it more difficult for young buyers to take that first step onto the property ladder, forcing them to have to rent in a higher-priced market. This will then make it even more difficult to save for a deposit.
It’s also looking like existing homeowners without a mortgage are now more enticed to sell their homes. Alternatively, if housing prices drop, people have more reason to keep their homes as investments, not settling for a lower price.