2023 Predictions

The real estate market in 2022 made little to no sense whatsoever. As such, experts throughout the industry are trying to figure out what exactly we can expect in the upcoming year. After all, if we don’t learn from 2022 then doesn’t that mean we’re doomed to repeat it? 

Interest Rates

US News & World Report has compiled all their takeaways and predictions. First, they look at mortgage rates. Over 85% of mortgage holders have rates under 5% and two-thirds of those homeowners have rates under four. Because of this, it’s thought that home sales will remain stunted because people don’t want to give up the lower rates they currently have. 

Local Markets

Real estate markets across the country are becoming further and further separated from those that live in them, believes US News & World Report. This publication predicts that if employers are successful at bringing employees back to full-time in-office work (as opposed to remote work that became popular during the pandemic), that we’ll see a price decline of around 10%. If we find ourselves in a deep recession in 2023, those price declines could look more like 20 or 25 percent. 

Renters

The general feeling surrounding the rental market is that it will rebound in the new year. There are currently historically high levels of new apartments being constructed all over the country. Rental rates are so high because supply isn’t there to meet demand. A new supply of apartments in highly saturated markets will give renters more buying power and bring down prices for everyone. 

To read the full report with in-depth details of 2023 real estate market predictions, visit US News & World Report.