Where is Real Estate Going in 2023?

Where is Real Estate Going in 2023?

As we prepare to put 2022 in our rear-view mirror, it's safe to say it was not a kind year in real estate.  As a result of the circumstances which led to such a roller coaster of a year have hopefully run their course, many experts see 2023 as a better year in real estate, especially for Buyers.  Because the panacea of covid has eased, the struggles to purchase that resulted in bidding wars, unprecedented circumstances that saw one of the most one-sided Sellers' markets in recent memory, experts seem to be suggesting there may be some relief coming for Buyers.  If you're planning to sell in 2023 don't fret, those same experts predicting relief for Buyers are also telling us that they see prices continuing to climb next year, just not as such meteoric rates. 

The relief they see comes in the form of increased inventory, more time to review and select property, the absence of bidding wars in most cases, and Sellers' recognition of traditional contingencies including but not limited to contingencies for financing, appraisals, inspections, and the like.  In other words, a shift back to more customary practices.  The price of home, while stabilizing and in some areas beginning to decline slightly, remains near the highs set in the latter part of 2021 through the Spring of 2022. 

As always, there are "experts" on both sides of the aisle making predictions on prices in 2023 and the difference is intriguing.  For example, sees prices rising by an average of about 5.4% and the National Association of Realtors┬« agrees with the trend, but at a slightly less aggressive stance, weighing in at a 2.5% increase.  On the other side is the likes of John Burns Real Estate Consulting, one of the largest real estate data and analytics firms in the US, suggests a price decline in the range of about 20-22%, noting that these decreases are based off the peak levels from Spring of this year.  Similarly, Zonda, another real estate consulting firm, also agrees with this trend, but sees a drop of only about 15%.  Both firms predicting the declines as they see it are in agreement that all of the declines will not occur in only 2023, but will be spread throughout 2024...mor of a slow bleed, if you will.  Because of the skyrocketing prices that seemed to pack decades worth of appreciation in to only two years, and the aggressive policies of the Fed and where they see interest rates explains their positions. 

One thing that we know for certain here at is that NO ONE knows for sure what's going to happen, but we know that no matter the direction it's sure to be a bumpy ride.  Buckle up!


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