Trends In Real Estate Markets Mid 2023

Introduction

Keeping up with the latest trends and statistics in the real estate market is critical to ensuring investors can make the most informed decisions to maximize their profits on their real estate investments. As we enter the first week of June 2023, there are several trends that are worth noting. In this article, we will take a look at the latest trends in the US real estate market in recent weeks.

And should any of the below trends inspire you to make a new investment in some hot real estate deals, then you may be looking for affordable and reliable real estate financing. The good news is that you’re already in the right place. Contact our team at REI News, and our experts will facilitate approval for real estate loans through reputed, professional real estate lenders.  

Now let’s take a look at the latest trends impacting the real estate market.

Home Prices

One of the most significant trends in the US real estate market is home prices. According to the latest Federal Housing Finance Agency (FHFA) House Price Index (HPI), home prices rose 4.3% in Q1 2023 compared to the same period last year. However, home prices are not as high as they were in early 2022. The FHFA HPI shows that home prices have been declining since the beginning of 2023. The decline in home prices is expected to continue in the coming months.

According to Bankrate, home values on a national level are almost certain to decline at least modestly, perhaps between 5 percent and 10 percent. However, some of the more expensive markets will potentially see more significant declines. Limited inventory, strong credit quality among current mortgage holders, and demand from young adults looking to become homeowners should help prevent prices from falling even further.

Zillow predicts that many regional housing markets will see home values appreciating between March 2023 and March 2024. Among the 400 largest housing markets Zillow economists analyzed, 294 markets are predicted to see rising house prices over the next twelve months ending with March 2024. Another four markets are predicted to remain flat, while 102 markets are expected to see a downturn. This marks an increase from a previous Zillow report that predicted only 238 markets with growing prices between February 2023 to February 2024. The housing market in Kentucky (Murray) is forecasted to see the highest year-over-year house price growth of 13.1%.

Inventory

Another trend in the US real estate market is inventory. According to experts, there is a shortage of inventory in the market. “The bottom line is that there really isn’t a likely scenario that leads to inventory levels approaching historically normal numbers in 2023, which means that prospective homebuyers are still going to have to work hard to find something to buy,” says Rick Sharga, Executive Vice President at RealtyTrac.

According to Bankrate, the housing market will be tepid in 2023, with only lukewarm demand and a limited amount of inventory available for sale. This means that prospective homebuyers will have to work hard to find something to buy.

Mortgage Rates

Mortgage rates are another trend in the US real estate market. According to Forbes, how much further home prices dip in 2023 will likely depend on where mortgage rates go. As we move through the early part of 2023, housing experts maintain a watchful eye on the economy, which continues to be pulled in all directions by high inflation, steep interest rates, ongoing geopolitical uncertainties, and recession fears, to name a few.

According to Bankrate, mortgage rates are escalating higher, and this is affecting home sales and prices. Home sales are expected to decline in 2023, and there will be a limited amount of inventory available for sale.

Buyer’s Market or Seller’s Market

Taking a big-picture look at the possible real estate market next year, most experts are in agreement that we are looking at a transitional year characterized by uncertainty. “The housing market will be tepid in 2023, with only lukewarm demand and a limited amount of inventory available for sale,” says Greg McBride, CFA, Bankrate’s chief financial analyst.

According to Danielle Hale, the top economist at Realtor.com, in 2023, the housing market may likely be more a buyer’s market than a seller’s market after being in a seller’s market for several years. “While the 22.8% increase in listings should be good news for buyers, it’s mostly due to homes taking longer to sell due to tighter affordability. In 2023, the national annual median price for homes for sale is projected to rise by another 5.4%, which is less than half the pace seen in 2022”.

Conclusion

In conclusion, the US real estate market is experiencing several interesting changes as we come into June 2023. Home prices are declining, and there is an inventory shortage in the market. Mortgage rates are escalating higher, affecting home sales and prices. The housing market is expected to be tepid in 2023, with only lukewarm demand and limited inventory available for sale. With all this pointing towards a cooling housing market in the short future, it may be a good idea to start shopping around for a good deal.

And should you be ready to pull the trigger on a newly discounted property, then make sure you’re doing so with the best real estate funding in the market. Speak to our experts at REI News, and we’ll make sure to pair you with only the most reliable and affordable lenders in the industry. Contact us today!