Realtors Predictions for 2023: Homebuying Costs aren’t Coming Down
What’s happening with the housing market is a popular topic of conversation these days. A spike in mortgage rates from the near-record lows of 3% at the beginning of this year to today’s 6.5% rate has caused a seemingly swift cool down to the red-hot housing market. It’s also left many potential buyers and sellers feeling confused and uncertain about their next steps.
To help you make sense of it all and navigate the market ahead, Realtor.com’s economic team recently released their predictions for the 2023 housing market, and our fully animated Where Goes the Neighborhood 2023 Housing Forecast website experience makes it easy for you to explore and discover what’s really happening in the market now and what you can expect in the year ahead. It also includes easy access to Realtor.com’s best tools and resources to help ensure you are well-prepared for your real estate journey next year.
We know that with a dizzying array of information available, having a reliable source of trusted information is critical, because a good understanding of the market and its trends can help you make better decisions about where you want to be in your housing journey in the year ahead. Whether you are planning to rent a new home or apartment, buy a home, or sell your current one, our Where Goes the Neighborhood 2023 Housing Forecast puts all the information you need at your fingertips.
Take a scroll through the neighborhood to learn about our predictions for higher rents and home prices and fewer sales, in addition to what we expect to happen with mortgage rates and the number of homes for sale. With purchasing power on the decline, don’t forget to make a stop in the experience to read through our First Time Buyers Guide, visit our Rent vs Buy calculator, or check out our Buying Power tool, where you can input your monthly income, debt payments and savings to determine your affordable, stretch, or out of reach buying power ranges. Save this information to your Realtor.com profile to easily filter for homes that fit within your budget, and as you search badges – Affordable, Stretch, and Difficult – will appear directly on homes listed for sale.
Without a doubt, 2023 will be a challenging year for homebuyers, sellers and renters, but according to Realtor.com’s Chief Economist Danielle Hale, today’s shifting conditions are an important step for the housing market to return to healthy and more balanced conditions in the next two to three years.
The good news is that staying flexible and up to date on market changes can help you be successful.
For buyers, that means if you can work remotely, you might consider relocating to a lower-priced area. Or if higher mortgage rates are your biggest barrier, explore options like adjustable rate mortgages, also known as ARMs.
For sellers, you can still make bank with rising equity and home prices, but you will need to adjust your expectations and pricing strategies to the changing market, and consider making buyer-friendly concessions.
For renters, with rents also set to rise in 2023, you may have to make some trade-offs to stay on budget. Instead of moving to a bigger rental, maybe stay put and try to negotiate a lower rent on a longer lease. Or even consider downsizing to save some money.
If you’re planning to buy or selling your house, work with a real estate professional so you have the expert insights you need to make the best possible move today and we would love to assist, please fill out the form below.
WHO IS RI PRASAD LUXURY GROUP?
We are one of Chicago’s leading providers of comprehensive real estate services. We are home to an ever-growing team of savvy & reputable local realtors who are community leaders, and customer-service-oriented staff. Whether you’re looking to find a new home, sell your home, or invest in your future; let us be your trusted real estate advisors.
“Real Estate isn’t just a profession, it is truly a obsession” - Ri Prasad