2023 Outlook.... What to expect from Spring Market

Can we skip to the good part?

And by “good part” I mean SPRING! 

While the holiday season is typically slower, the spring real estate market kicks off after the Super Bowl and usually brings with it new patterns and trends.

So what does this mean in 2023? Here are a few things experts are predicting: 

1) New construction is making a comeback. 

Now that the price of lumber and other building materials are leveling off, builders are constructing “inventory homes” also known as “spec homes.” These properties are move-in-ready, and built with finishes that appeal to a broad range of buyers. After several years of low inventory, this is a welcome change!

2) Home prices will increase, but at a slower rate. 

Realtor.com says that home price growth is expected to continue slowing, dipping below its pre-pandemic average to 5.4% for 2023. 

3) Mortgage rates will likely hover around 7% although we've seen a recent drop.  Even with the recent rate improvement the most welcome change is the stability within the last 3-4 months.  Rates havent seen a more stable range since late 2021. 

Because of the overall uptick in rates, buyers will have less buying power in 2023. Affordability will outweigh many other search criteria, as buyers will get creative to find their perfect home, whether it means searching in different areas or pooling resources with family and friends to build equity. 

If you’re thinking of making a move this spring, reach out via DM or drop me an email anytime if you’d like to have an initial conversation!