Housing market forecasts for 2023 have varied predictions, with some expecting gains of around 5% to others expecting a deterioration of over 5%. What is clear is that the era of low mortgage rates, buying frenzy, and double-digit price growths is over.
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.