NAR's forecast for 2023
The National Association of Realtors (NAR) has recently released their forecast for the 2023 housing market. This report provides valuable insights and predictions for the real estate industry, including information on pending home sales, mortgage rates, housing inventory, and market trends.
According to the NAR's data, the housing market may see a rebound in the new year. Pending home sales fell again in October 2022, but contract signings fell at a slower rate than the previous month. This could mean that we may see more housing activity in the new year. Additionally, mortgage rates have likely peaked and are starting to decrease as inflation cools. This could bring more buyers back to the market, though housing inventory will remain tight.
One of the main reasons for the decrease in housing activity is the tight inventory. The number of housing starts will continue to be below the historical average of 1.5 million due to persistent building material bottlenecks. Single-family construction will be most impacted. Furthermore, fewer homeowners will sell their homes and purchase another as mortgage rates are substantially higher than in 2021.
Despite these challenges, the NAR's forecast also highlights certain markets that are expected to outperform in the new year. These markets have better housing affordability than the national level, a higher share of renters who can afford to buy the median-priced home, stronger job growth, and a higher share of the information industry in the local GDP.
The NAR's forecast is an invaluable resource for anyone interested in the real estate market. You can access the full report and the data by visiting the National Association of Realtors website. This report includes a wealth of information that can help buyers, sellers, and real estate professionals make informed decisions about the housing market in 2023.
In conclusion, the 2023 housing market forecast from NAR is out and it shows that despite some challenges, there are still some opportunities in the market. It's important to stay informed and have the latest data to make informed decisions. With the NAR's forecast, real estate professionals, buyers and sellers can have a better understanding of what to expect in the coming year.
You can see the reports at the links below.
On The Horizon: Markets to Watch in 2023 and Beyond
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