Are House Prices Dropping in 2023? Here's What You Need to Know

Hello everyone, I'm Maureen Mahood with SellYourHomeCharlotte.com. As always, I'm here to provide you with the latest insights into the housing market. Let's dive into what the experts are saying about the housing market in 2023.

According to various sources, including USA Today, Fortune, and Freddie Mac, the housing market is experiencing some significant changes. The U.S. economy has been growing at its long-run average rate of 2% during the first quarter of 2023, and the labor market remains strong with an unemployment rate below 4%. However, the housing market has been impacted by high rates, with many U.S. homeowners locked into previously low mortgage rates and content to remain in their current homes. This has helped to keep inventory low.

Robert Shiller, who accurately predicted the 2008 housing bubble, is closely watching the U.S. housing market after its period of exuberance during the pandemic, which included a 43% jump in U.S. home prices. Fast-forward to 2023, and the market is showing signs of cooling down.

Most experts in the housing industry predict less buyer demand, lower prices, and higher borrowing rates. Mortgage rates have dropped from their peak, but at 6.26%, they remain above anything seen since 2006. This, along with a shortage of availability, has pushed many purchasers to the sidelines. Home prices may fall slightly, but not drastically as they did in 2008.

So, what does this mean for you? If you're a homeowner thinking about selling, remember that as home prices increase, the number of buyers who qualify decreases. Also, keep in mind that if you're waiting for your home to appreciate, so is the house that you're planning to purchase.

For buyers, as interest rates rise, your purchasing power decreases. It's important to consider these factors when planning your next move in the housing market.

Thanks so much for reading, and as always make it a great home selling and buying day. If you ever have any questions at all feel free to reach out, and I will see you next time.

Sources:

1. USA Today

2. Fortune

3. Freddie Mac

4. Forbes

5. Norada Real Estate