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Home Prices 2023: It Will Bottom Out As Experts Say

Home Prices 2023: It Will Bottom Out As Experts Say
Decline property prices and lower mortgage interest shows as arrow goes down. (Photo: Dreamstime.com)

Based on the survey, home prices are expected to bottom out as experts say in 2023 and return to a more normal growth rate.

Prices are expected to bottom out as experts said, which is by 1.6% across the country by the end of the year, with the biggest drops happening in big cities. Growth is expected to average 3.5% over the next four years, which is about the same as the long-term average. This year, sales of new homes could drop to the same level as 2016.

Home Prices 2023: It Will Bottom Out As Experts Say

Graph presents a declining data while a man is falling down. (Photo: iStock Photo)

“The housing market is going back to normal. Even though there are early signs of renewed buyer interest at the start of this year, prices should generally level off in 2023, which will help buyers catch up, says Jeff Tucker, a senior economist at Zillow.

“Prices shouldn’t go down too much because there are so many people in the age range of first-time homebuyers and there aren’t enough homes for sale. “After the roller coaster ride that home prices have been on lately, a return to more normal growth would be nice,” Tucker said.

Fewer people want to buy homes because they can’t afford to do so. Freddie Mac says that when mortgage rates dropped in January, some buyers came back to the market.

However, rates for a 30-year fixed mortgage are now getting close to 7%. This has made it hard for potential buyers to act, especially repeat buyers who already have mortgages with rates that are less than half of what they are now.

 

Mortgage Rates Will Bottom Out As Experts on Zillow’s Panel Said

The experts on Zillow’s panel said that after the first quarter, mortgage rates could start to go down. But experts said that falling interest rates are much more helpful for making homes affordable than falling home prices.

Zillow said that sales of existing homes will drop from 5 million in 2022 to 2.3 million this year.

To meet the need for inventory, new building may also pick up, and home builders have given buyers financial incentives to help with affordability issues.

 

Read More:

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