Zillow and Wells Fargo make their predictions
The latest 2023 housing reports from Zillow and Wells Fargo have one thing in common: a damp outlook for next year’s market, especially if the Federal Reserve continues to raise interest rates. Here are their most notable predictions: Both firms predict that sales will continue to fall, with Wells Fargo expecting a 6.5% drop in new-home sales and a 13.1% decrease in sales of existing homes Zillow expects home price growth to slow to just 1.3% over the next 12 months Wells Fargo predicts early 2024 will be the market turning point, with prices growing by 3.1% that year
The most notable takeaway from these reports is that they still predict price growth. The areas that got really heated during the pandemic may see bigger drops, but across the board, there’s not a lot of room for prices to fall until inventory really catches up. Interest rates will continue to rise, but don’t expect a major “sale” on every property.