Housing Market Forecast for the Rest of 2023

As we move into the latter half of 2023, the housing market remains a focal point of interest for homeowners, buyers, and investors alike. The past year has been marked by fluctuations and uncertainties, but what lies ahead for the real estate sector? Let's dive into the expert forecasts and examine what we can expect for the rest of 2023.

Home Prices: A Positive Growth Trend

The housing market's pulse is often measured by changes in home prices. As we look ahead, it's evident that the direction of home prices will vary by local market. However, the overall trend shows a positive growth trajectory. Numerous experts have weighed in with their predictions, and the average of their forecasts suggests that we can expect a 0.7% increase in home prices for the remainder of the year.

Here's a breakdown of the latest price growth forecasts from prominent entities:

• Fannie Mae: 3.9%
• MBA (Mortgage Bank Association): 0%
• NAR (National Association of Realtors): -0.4%
• Realtor.com: -0.6%
• Average: 0.7%

Mortgage Rates: Cooling Off with Inflation

The dynamics of mortgage rates are intrinsically linked to inflation trends. As we progress through the latter part of 2023, experts anticipate that mortgage rates will ease due to the cooling off of inflation.

Let's take a closer look at the projected mortgage rates for both the third and fourth quarters of 2023:

Quarter 3 of 2023:

• Fannie Mae: 6.8%
• MBA (Mortgage Bank Association): 6.6%
• NAR (National Association of Realtors): 6.5%
• Average: 6.63%

Quarter 4 of 2023:

• Fannie Mae: 6.6%
• MBA (Mortgage Bank Association): 5.9%
• NAR (National Association of Realtors): 6.3%
• Average: 6.27%

Home Sales: A Steady Pace Despite Low Inventory

One of the persistent challenges in the housing market has been the issue of low inventory. However, experts remain optimistic about home sales for the year. Despite the challenges, they project that around 5 million homes will still be sold in 2023.

Here are the total home sales forecasts for 2023 in millions, as per expert estimates:

• Fannie Mae: 4.9 million
• MBA: 5 million
• NAR: 5.1 million
• Average: 5 million

The housing market in 2023 has shown resilience, with positive price growth predicted by experts in many areas. While mortgage rates may fluctuate, the historical trend suggests they are likely to ease in line with cooling inflation. Additionally, even with low inventory posing challenges, the projected sales figures for the year indicate a steady pace of transactions.

Whether you're a homeowner, buyer, or investor, staying informed about the housing market is crucial. As we continue through 2023, keeping an eye on local market trends and national forecasts will help you make informed decisions in this dynamic real estate landscape.