Since the pandemic, the housing market nationwide seems more tempestuous and unpredictable than ever. High housing prices and limited inventory have created a clear seller’s market. But with mortgage rates on the rise, is that going to change? Are housing prices coming down any time soon? Is it a good time to buy? A good time to sell?
While there are still many unknowns, here’s what you can expect from the real estate market in spring of 2023.
Housing Market Forecasts
Are home prices coming down this spring? Most signs point to no, at least not substantially. In fact, we are now experiencing a record 131-month streak of month-over-month price increases. Add the rising mortgage rates into the mix, and we are still looking at a shortage of affordable housing. But on the bright side for buyers, this price increase has slowed to become more gradual than it was in the fall of 2022.
Housing Inventory Outlook
Another positive sign in the real estate market this spring is the gradual increase in inventory, which has gone up by 70% from where it was last year. Despite this uptick, housing inventory remains a challenge, as it has been since the crash of 2008. Inventory is still at a historic low, which contributes to rises in pricing. Most experts agree that this historic low will not dramatically change this year.
Tips For Buyers
Given these facts and figures, you might wonder if there’s any hope for prospective buyers out there. We are seeing buyers becoming more cautious, hoping to wait out this volatile market before making a purchase. However, this may not be the best plan. Historically, during periods when many buyers are cautious, they all tend to enter the market at once when they realize prices are not going down as they had hoped. If you have the courage and fortitude to accept a little risk, this could be a great time to buy, while other buyers are not competing with you for the same low inventory.
If you need a trusted guide to help you feel more comfortable in this market (whether you’re buying or selling), reach out to the team at D Realty. We are experienced at helping our clients navigate all aspects of the buying and selling process in the Albuquerque, New Mexico area.