2022's housing market was interesting, to say the least. Inflation across the United States was at an all-time high as the fourth quarter of the year approached, leading to higher housing costs and creating the ultimate seller's market. But what's in store for 2023?
Experts Predict a Price Stall in Early 2023
Chief economist Jan Hatzius of Goldman Sachs recently informed clients and media that experts should "expect home price growth to stall completely, averaging 0% in 2023," according to an article published by CNN in August 2022. Most mortgage experts agree; however, it's not anticipated that this stall will turn into declines on a national level in the first couple quarters of the year.
The Latter Half of 2023 Will Become a Buyer's Market
A price growth stall in early 2023 is likely to lead to declining home prices in the latter part of the year, according to 44% of the housing experts who participated in an expert panel hosted by Zillow in September 2022. Experts anticipated that South and Midwest states were likely to see the biggest decline in housing prices in 2023. That said, experts also agreed that rental prices were likely to continue to rise in 2023 with an average growth of about 5.4%.