As 2022 winds down and we enter 2023, there are many predictions going around with respect to what will happen to the housing market in the next year. Here is a recap of 2022 and what we can expect going forward.
Some are predicting prices to depreciate by 20%, while others are forecasting smaller declines, and few are calling for an increase in prices. The low inventory that is available for sale is what is preventing house prices from a steep decline. Higher mortgage rates have impacted demand, but have also frozen up supply.
Labor market expected to remain strong in the short-term, but unemployment predicted to rise beyond 4% over the next 12 months
The real estate market is rebalancing as supply and demand are adjusting to the higher mortgage rate environment. An increasing number of prospective homebuyers have found that their dream homes have been pulled out of reach as mortgage rates climb…