What Is the Picture of Real Estate in 2023?
The Housing Markets of 2023 may be a little safer than it was a few years ago. Despite the fact that housing markets across the country are in a slowdown, there are still some bright spots to be found. A study released by the National Association of Home Builders (NAHB) on October 18 indicates that home prices in the U.S. are not as high as they were a year ago. Let’s dive into the details, and feel free to contact our Liberty Lending real estate experts if you have any questions!
The number of houses being built is slowing down, which will lead to lower home prices and fewer sales. The millennial generation is entering their prime homebuying years, which means fewer starter homes on the market. Also, the Federal Reserve is tightening its financial conditions, which means higher mortgage rates. Inflation is also on the rise, which means higher credit costs. The good news is that many homeowners are holding on to their mortgages because they want to hold on to their investments. This means that the housing market may be a little less prone to a crash than it was a few years ago.
The biggest obstacle to a housing market revival is the lack of supply. This is due in large part to the fact that many builders went bust during the previous downturn. This means that even though prices aren’t as high as they were in 2008, the supply of homes to buy remains incredibly low. In fact, according to the National Association of Home Builders, home prices were almost 4% higher in 2022 than in 2018.
The number of listings that are actively on the market has also fallen sharply, indicating that demand for homes is outstripping supply. In October, the number of views on listings was 15.9% lower than a year ago. The number of homes sold was also down a sizable 5.5%.
Home prices have been on the rise since 2012. In fact, the number of homes sold in the U.S. has increased each year since 2012. However, this trend hasn’t been as strong as some were hoping. The median home price was just 8.4% higher in September compared to a year ago. The number of homes that sold in September was up just 0.35% compared to a year ago.
The National Association of Home Builders recently released its Housing Market Index, which is an annual survey of the housing industry. The index measures the health of the housing market by combining data from NAHB and Wells Fargo. The list of cities and markets that are most likely to experience a major home price decline is long. In fact, Zillow predicts that home values in 271 of the nation’s 896 regional housing markets will drop between September 2022 and 2023. The list includes metropolitan areas such as Phoenix, Scottsdale, Las Vegas, Ogden, and Salt Lake City.
Despite the fact that home prices may continue to rise, the housing market may not be as strong as it was in 2008. The number of new listings and home sales has also fallen, putting many homeowners off the fence. In fact, the number of properties for sale is at its lowest since August 2012. This means that even if prices remain relatively stable, the housing market may not be as healthy as some might think. What do you think will happen in the housing market of 2023? Start your journey with Liberty Lending today!