2023 Predictions

Even with the way the past three years have gone, experts all still agree: we’ve never been in a crazier housing market than the one we’re in right now. Real estate prices, inventory, applications for mortgages, and interest rates have been all over the place making it hard to figure out which way is up. Thankfully, our friends at Realtory.com are here with their predictions for 2023 and what we all might be able to expect. 

In short, the Realtor.com 2023 Forecast spells out continued price increases for rentals and home sales, though not quite the steep hikes we’ve seen as of late. Furthermore, mortgage rates which rose to 20-year highs this summer, will likely stay put. There may be short term rises and falls but Realtor predicts that they won’t have another huge surge. 

Number of actual home sales will likely continue to fall as prices continue to go-up. Buyers simply can’t balance both high home prices AND high interest rates. Nationally, Realtor.com predicts home prices will rise another 5.4% year over year in 2023. That’s still going to hurt—but not as much as the double-digit increases seen during the COVID-19 pandemic. 

Inventory, however, is expected to rebound, though not in the ways one might expect. It’s not that more houses will hit the market, it’s that fewer buyers will and homes will sit for longer. Demand will still be higher than supply and this scarcity is what is leading to continually higher prices. 

To read the full Realtor.com prediction for the 2023 real estate market, visit here!