There have always been long-standing rules about real estate ownership, including the three most important ones: location, location, location.
But the one constant about real estate investing is that nothing ever stays the same. Even the location rule, because preferred locations change from year to year, and certainly from generation to generation.
After the 2020 pandemic and the resulting red hot seller’s market through early 2022, the situation has cooled drastically in the second half of the year. Home prices have leveled – and houses that would’ve been sold in days now sit on the market for weeks and months. That, along with rising mortgage rates approaching 7%, has turned that once red hot seller’s market into a more balanced market for would-be buyers.
7 Housing Market Trends in 2023
As we approach 2023, it’s time to consider what the experts expect from the housing market in the new year.
1. Buyers Will Begin the Year With a Wait-And-See Mindset
Market confidence in Q4 2022 was at its lowest point since March 2020, according to Freddie Mac’s Housing Market Outlook – a quarterly survey evaluating the public’s sentiment on housing-related issues.
Of those surveyed, 34% said they’re confident the market will remain strong over the next year – down 12% from Q3 2022. In the next six months, only 21% said they are likely to buy, 14% said they are likely to sell, and 17% said they are likely to refinance.
With interest rates still between 6% and 7% with
