As we approach the end of the First Quarter of 2023, many are wondering what the US housing market will look like. Here are what several real estate experts are predicting.

A More Balanced Market

One of the most significant predictions is that the housing market will become more balanced. This means that the rate of increase in home prices will slow down, and there will be more houses available for buyers to choose from.

Low Mortgage Rates to Continue

Low mortgage rates are likely to continue in 2023. This is excellent news for people buying a house, as it can help offset the impact of rising prices.

Increased Availability Could Lead to Some Challenges

More houses being available could lead to some "friction" in the market, as there could be longer waiting times and fewer bidding wars.

Builders to Focus on Smaller Homes

To meet the demand from first-time homebuyers, builders may focus on constructing smaller homes and townhouses in 2023.

Inflation Will Continue to Impact the Housing Market

Inflation is likely to continue to impact the housing market in 2023. It could cause home prices to increase further or lead to a slowdown in the market.

Government Policies Could Also Impact the Market

Government policies could impact the market. Changes to tax laws could lead to a slowdown in the luxury housing market, but government efforts to increase affordable housing could benefit the overall housing market.

Overall, the experts predict that the housing market will remain relatively strong, but buyers and sellers will still need to navigate potential challenges such as inflation, changing government policies, and increased competition.

National Association of Realtors' Predictions

According to the National Association of Realtors (NAR), the real estate market is expected to return to a sense of normalcy in 2023. The majority of real estate agents and brokers predict that home sales will increase, with the largest growth expected in suburban areas. The expected growth is due to continued low interest rates and a recovering economy, which should boost consumer confidence and encourage more people to buy a home.

However, the survey also found that inventory remains a challenge. Many potential sellers are holding off on listing their homes due to concerns about finding a new home themselves. This has led to a shortage of available homes, driving up prices and making it more difficult for some buyers to enter the market.

The good news is that more homes are expected to be listed for sale in 2023, which should help to balance out supply and demand. As always, buyers and sellers should work closely with their real estate agents to stay informed about the latest trends and make well-informed decisions.

Final Thoughts

As we head into 2023, it's important to keep in mind that the housing market is ever-changing. While the experts predict a relatively strong market, challenges such as inflation, government policies, and inventory shortages could arise. However, with the right preparation and guidance from a real estate agent, buyers and sellers can navigate the market with confidence.