Let’s take a look at the rest of the 2023 housing market – Spark Notes style!
1. Home Prices & Rent Growth
→ Nationally, home prices are expected to level off for the remainder of 2023 and into 2024.
→ Rent growth may overtake home price appreciation, with the rental market remaining strong and rental prices expected to increase.
→ The number of renters is also expected to rise especially in urban areas
2. Mortgage Rates and Inventory
→ Mortgage rates will remain high (above 6%), contributing to the overall high cost of home ownership.
→ Unwilling to give up their sub-4% rates, sellers will likely stay put, causing the housing inventory shortages to persist.
→ Joint real estate purchases will become more common as a way to afford larger properties and qualify for mortgages.
3. Buyer Trends
→ Following a recent decline, the percentage of first-time homebuyers entering the market may rise in early 2024.
→ Affordable markets in the Midwest, South, and Sunbelt will continue to attract younger buyers who are able to relocate due to remote work.
→ Further, many are moving to be closer to family and loved ones, with 17% of recent buyers citing this as their primary motivation
