![]() ![]() Month-over-month existing-home sales prices continued their downward trend and are roughly 11% lower than their record high of $413,800 in June.Īt the same time, total existing-home sales dropped 1.5% from November to December, marking the eleventh consecutive month of declining sales, and down 34% from a year ago, per NAR.ĭespite all these mixed messages, some experts say that home shoppers have reason to be hopeful in 2023. Though this is the 130th consecutive month of YOY price increases-a record streak-the YOY increase was at a slower pace compared to November. The median existing-home sales price was up 2.3% to $366,900 in December compared to a year ago, according to the National Association of Realtors (NAR). For one, mortgage rates are showing some signs of ease from reaching 20-year highs in late 2022.Īnd after a couple of years of a meteoric rise, home prices seem to be coming down to Earth, albeit slowly, making it difficult for many homebuyers to access affordable housing. ![]() Nevertheless, there are indicators that a housing market correction is underway. Housing Market Forecast for February 2023Īs we begin to move through 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. But how far home prices dip in 2023 will likely depend on where mortgage rates go. Yet, even though home prices remain high year-over-year (YOY), they’re not as eye-popping as they were in early 2022. ![]() Tight inventory has kept prices from substantially dropping off, making homes still unaffordable for many, especially first-time homebuyers. In addition, new home construction fell again in January-the fifth straight month of declines-adding to the longstanding inventory problem. Many economists remain mixed about whether home prices will continue to decelerate throughout 2023-or even drop at all.įor one, the nation’s overall housing supply remains limited, as those who purchased homes in recent years at extremely low mortgage rates are staying put. While rates did level off through January, causing some homebuyers to re-enter the market, a recent uptick in rates suggests the market is going back to a standstill. Skyrocketing interest rates put some much-needed pressure on the housing market after home prices hit record highs across the nation last year. ![]()
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