2022 has been a rather challenging year for home sales due to various factors, such as economic uncertainty and the ongoing pandemic. With home sales and prices hitting the brakes in multiple areas, mortgage rates escalating even higher, and general uncertainty sweeping the market, many prospective sellers, buyers, and homeowners have been nervous and hesitant to make any moves. However, as we wind up 2022 and quickly head on to the new year, it’s time to start thinking about the future of real estate come 2023.
Will home sales decline?
Home prices have been steadily increasing for some time now, resulting in a decline in home sales. According to the (NAR) National Association of Realtors, 2022 saw a +9.6% increase in home prices and a -6% decrease in dollar volume, which resulted in a -16.2% decrease in home sales. With these figures in mind, it’s clear that come 2023, we can expect further home sales declines.
Forecasts and predictions from the National Association of Realtors (NAR) show that housing sales are expected to decline further next year. According to their predictions, we expect home sales of 4.78 million existing homes in 2023, 6.8%- down from 5.13 million sold in 2022. However, this does not indicate a decline similar to the losses suffered in 2022 since the market is positioned to stabilize and return to normalcy.
2023 Home Prices Forecast
While home sales are said to continue on a downward trajectory come 2023, home prices will likely take a different route. The NAR predicts that existing-home prices are set to more or less stabilize, with half of the country experiencing a slight price decline and the other half seeing small price gains. Averagely the NAR expects the annual median home prices to increase by only 0.3%, after a 9.6% gain in 2022.
This increase means that the median home price will increase by 0.3% from this year’s ($384,500) to $385,800. According to Lawrence Yun, chief economist at NAR and senior vice president of research, rent prices will also increase by 5% next year, following a 7% rise in 2022.
Now that you have a rough idea of what to expect in the real estate market come 2023, it’s time to start planning your next move. If you’re a homeowner, begin preparing yourself for increasing rent prices. And If you’re a buyer, don’t wait any longer! The market is still active, and there are plenty of great deals to be had.
No matter what stage of buying you find yourself in, Bridlewood is here to help. With our experienced agents, you can make the most of this market and find the perfect home or property that fits your needs. Contact us today to start planning your real estate journey come 2023.
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