We have seen some extraordinary changes in the housing market over the past twenty five years, with conditions moving through five distinct growth cycles which have pushed national median house values 412% higher.
In 2023, one of the biggest unknowns is how interest rate hikes and the transition from fixed to variable rates will affect already strained budgets and declining property values.
Nearly one-in-four mortgages of the 2.1 trillion loan market value will switch from ultra-low 2% fixed rates to above 5% fixed rates this year.
CoreLogic’s daily dwelling values index shows that at the end of December 2022, home values had fallen to 8.7% below their April 2022 peak.
Other market conditions, such as consumer confidence, will also have a significant impact on house prices. Do you sell before you buy?
Your decision will impact the stock supply and sale days.
A full-blown price crash or a significant correction will be isolated to some areas. However, I do not foresee it becoming widespread.
Today’s real estate market is very different from recent years’ wild boom ride. Therefore, when choosing the right agent, you should select one who can negotiate on your behalf in a falling market.
As a real estate professional with over 30 years experience spanning multiple market conditions, I am ready to assist you with your next property transaction.
