Selling and buying a home is a major commitment, which is why it’s important to start the process early and look to the market’s future. As a result, many potential homebuyers have been asking about the 2023 housing market and are wondering if the real estate market will crash in 2023. For more information, let’s take a look at where the housing market is headed based on predictions.
What’s Forecasted for the End of 2022
Many big things are already happening in the world of real estate this year. For example, the supply of completed homes has started to progress upward these past few months, which may signify that homebuilders could be offering greater price concessions to continue driving sales. However, the sales of existing homes and building permits have fallen more noticeably in areas where they increased more than others.
There are many real estate and economic experts who predict that home sales are already on the decline in 2022. Goldman Sachs expects there to be a 22% decline in new home sales prior to the year’s end, whereas the Economic and Strategic Research (ESR) group at Fannie Mae forecast that home sales are going to decline by 17.2% from 2021. With that said, Fannie Mae also believes that economic growth will resume during the latter half of 2022.
Estimates for the 2023 Housing Market
As interest rates continue to climb, the housing market has only slowed down — which is only expected to worsen as the country welcomes the new year. The housing slowdown will very likely continue from 2022, leading Americans to wonder if the real estate market will crash in 2023. Given how affordability constraints continue to climb for homebuyers, this market cooldown will remain. It is also believed that home price growth will actually stop completely and average at 0%, and the mortgage market is predicted to fall further to $2.17 trillion in 2023.
Fannie Mae has many other significant predictions for the coming year. They forecast that inflation, the slowed housing market, and the monetary policy of the federal reserve will push the country’s economy into a modest recession in 2023. Even though many have predicted declines, the federal reserve still intends to increase interest rates in its attempt to curb inflation.
Will the Real Estate Market Crash in 2023?
The pandemic from 2022 no doubt played a part in creating a big shift in the national market — but will the real estate market crash in 2023? Many organizations forecast that while sales and tempered demand will cause a recession, the real estate market will not crash in 2023. At the very least, it will likely not be as serious as the housing bubble pop that occurred in 2006.
Local markets are very important for real estate, which is why you should side with a team familiar with your local area. No matter where the market is headed next year or if there will be a real estate market crash in 2023, you can always rely on the Joseph Bograd Real Estate Team for assistance. Whether you’re looking for homes for sale in Bucks County, PA, or are interested in Montgomery County, PA, real estate, we will be there to assist you. Call today for more information and to schedule your appointment.