Taking a look at the rest of the 2023 housing market - Spark Notes style!
Home Prices and Rent Growth
• Home price and rent growth will likely 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 as the cost of homeownership increases, particularly in urban areas.
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.
Buyer Trends
• Following a recent decline, the percentage of first-time homebuyers entering the market may rise in early 2024.
• Further, many are moving to be closer to family and loved ones, with 17% of recent buyers citing this as their primary motivation.
Source: The Fed's inflation-fighting tactic was effective in cooling the housing market. What now?
25+ Housing Market Predictions for the Next 5 Years [2023-2027]
