What to Expect from the Housing Market in 2023
As we approach the end of 2022, everyone is wondering what the housing market will look like in 2023. With so much uncertainty, it can be difficult to predict what the future holds.
That said, there are some trends we can look to that might give us an accurate glimpse of what you can expect from the housing market next year. So, here are some trends we expect to see in the housing market in 2023.
An Increase in Housing Demand
One trend that has been consistent over the past few years is the rise in demand for housing. With interest rates at all-time highs and record-low inventory levels, more and more people are looking for affordable homes. This level of demand is expected to continue in 2023.
So, one of the best ways to react to an increase in housing demand is to get out in front of it. Take your future into your own hands and patiently explore what’s available on the market. That way, you won’t fall victim to the ebb and flow of the market. Instead, you’ll be able to shift and take advantage of every new opportunity.
Will Housing Inventory Increase or Decrease?
One of the biggest questions on many people’s minds is how housing availability will change in 2023. But, unfortunately, experts aren’t certain.
Some believe that housing inventory is expected to drop in the coming years due to an increase in demand for existing properties, coupled with the slower development of new housing projects and material shortages. But some experts believe that housing inventory will increase in 2023.
So, we likely won’t know until we get there. Fortunately, there are still affordable homes on the market for interested buyers, so don’t waste any time before seizing this incredible opportunity.
More and More People Will Explore Alternative Housing Options
Another trend to consider is the shift in focus from suburban to urban living. As cities become more desirable, more people are moving to the city centers and leaving their suburban homes. This could lead to an influx of people looking to buy homes in the urban areas while the demand for suburban homes decreases.
It’s also very likely that more people will be exploring alternative forms of housing in 2023. This includes rent-free living, intentional communities, downsizing to smaller homes, and even living on boats.
What Will Happen to Interest Rates?
Interest rates hit all-time highs in 2022, and unfortunately, the future of interest rates in 2023 is relatively uncertain. But there is hope on the horizon. Experts believe that there are three likely scenarios that mortgage interest rates will follow in the coming years.
First, if inflation remains high, the Federal government will likely continue raising interest rates. Second, if the consumer market responds well to inflation intervention, we should see a steady decline in interest rates. And third, the worst-case scenario is that rates get too high and we fall into a national recession, ultimately resulting in record-low interest rates.
Now, while many of these options may sound bleak, a lot is being done to counteract any negative impact this may have on the housing market. If you’re ready to buy a home, this shouldn’t dissuade you. You should just continue to remain cautious when selecting the home you want and plan your personal finances accordingly.
Thinking About Buying a Home in 2023?
If you’re thinking about buying a home in Jacksonville and the surrounding areas in 2023, you’re in luck. Here at the Welch Team, our team of real estate experts knows the housing market better than anyone and can help you find the home of your dreams. Contact us today to learn more!
And while you’re here, don’t miss this opportunity to grab a free copy of our expert buying guide. It contains valuable tips from industry experts, a comprehensive walkthrough of the home-buying process, and a trusted list of local vendors.