The years that have followed since COVID-19’s appearance have been wild ones for a variety of reasons. One of those has been noticeable especially in the United States: the real estate market. What was once a boom in opportunities for buyers and sellers alike in 2020 has now turned into housing volatility and shortages throughout 2022. Prices have risen exponentially, and with them the interest rates for mortgages required to purchase them.
Will we expect more of that going into 2023? Fortunately for everyone, the experts predict otherwise! Read below to get a summary of what you might be able to expect.
What We Can Expect
Just like with all other things in the world, we are slowly but surely progressing towards normalcy. Now is the time for us to finally see it with properties throughout every state of the country. As reported by the National Association of REALTORS, economists revealed predictions for 2023 during their annual Real Estate Forecast Summit.
Important things to know is that the market is expected to moderate itself, not completely revert what has been done over the last few years. What this means is that while we will no longer see rapidly rising mortgage rates or home prices, it is unlikely in most regions that we will see much decrease in anything other than average unit sales.
What Are the Statistics Saying?
Unfortunately, property shortages will still exist as homeowners are still resistant to selling. 2023 is expected to show an average of -7% from 2022 across the nation with regards to sales. But house appreciation slowing is a key victory in shifting things back in favor of buyers, with NAR Chief Economist Lawrence Yun insisting, “I see many hopeful signs for early next year”. Trust the experts!
Specific markets like San Francisco, CA are projected to see noticeable price drops between 10-15% in listing prices next year, but most other areas in the country will be stabilized with very little change in one direction over the other. Florida in particular will see a 5% increase in pricing in certain cities like Jacksonville and Daytona Beach.
Perhaps the most vital (and optimistic) piece of information provided at the economists’ presentation was in regards to mortgage rates. With rates having boomed over the entire 2022 year, the belief is that we have hit a peak with no expectation of it continuing to rise any higher. A more normalized mortgage market means we should be slowly but surely seeing a decline in rates. This is PERFECT for anyone looking to move to the Miromar area in 2023!
It is important to note this is more of a hope than a guarantee; Yun expects an optimistic 5.7% by the end of 2023, while Realtor.com’s Chief Economist Danielle Hale rounds rates to be 7.1%. Regardless of the spread, we take the fact that most expectations agree there will be no further increases as a huge victory going into the new year.
Let DMR Be Your Real Estate Team in 2023 & Beyond
No matter what happens next year and the years that follow, you can expect the team at DMR to be here through thick and thin. We enjoyed the high highs of 2020 and 2021’s booms, and we helped many families secure the sales and purchases of properties when slimmer pickings showed up this year. Nothing changes for us regardless of what takes place. Miromar Lakes is a beautiful area that will call people to it to make their new home one way or another.
Now that you know what next year might look like for Florida, are you thinking of buying or selling? Let us help. Contact us so we can get you started right after New Year’s! There’s no better time to start than today.
