With the new year rapidly approaching, there is some uneasiness going around about the status of the housing market. 2022 was not the easiest year as far as mortgages, interest rates and the availability in the housing market in general. As people look at what the new year has to hold, many people begin to wonder what 2023 will look like. We are all in different stages of our lives, but every year thousands of individuals look to buy and purchase homes. Purchasing a home is a huge investment and with the ever-changing economy, it can be hard to get a handle on these complex situations. You definitely want to feel prepared and confident in your decision to purchase a home and you will want to know when the right time is to purchase it. Based on the trends seen in 2022, there are some predictions that can be made about what the housing market will be like 2023.
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Inflation and Mortgage Rates
One of the biggest aspects of the housing market comes down to these two things – inflation and mortgage rates. 2022 was arguably a difficult year for housing trends as we saw a dramatic rise in mortgage interest rates. In the attempt to lower inflation, the mortgage rates increased by a lot. This severely impacted the supply and demand when it comes to houses. There is a tight balance between inflation and mortgage rates. If we see an increase in inflation then the mortgage rates are most likely going to respond by going up. Everyone wants to see stability within the in market economy for the next year, but we know that when the economy fluctuates, the housing market and the mortgage rates fluctuates as well.
Supply and Demand
We all know that the price of buying homes is always dependent on the supply and demand problems going on in the economy. If there are not many houses available and there are many people looking to buy, obviously the house prices are going to get higher. During the COVID pandemic, there was a major increase in the housing prices because of the supply and demand. Now that we have gotten out of that stage of the pandemic, we have seen trends in the housing prices begin to level off. That is exactly what is predicted for the housing market next year. It is anticipated that the supply and demand will not be nearly as dramatic and that housing prices will drop down and eventually level off into their new normal for that year.
Keeping Tabs on the Market
If you are looking to buy a home next year, or if you are just wanting to keep tabs on the market and its trends, there are people that can help keep you in the loop. Realtors are a great source to look towards if you are wanting accurate and updated information on the housing market. Their job is to be constantly informed about the trends and statistics of the house buying processes and they will be constantly looking into any of the changes that are happening. Idaho Falls realtors are great resources to look into to keep constant tabs on the ever-changing market and to work with high class professional realtors. You will want to keep yourself in the know in order to continue to make well-informed decisions on these intense purchases. Knowing and understanding the market will help you to navigate the supply and demand and help you to get the best mortgage rates based on inflation and the economy. 2023 is predicted to be the leveling out year so keep an eye out on finding your dream home for the right price!