Housing market 2023

The housing market was fiercely competitive for two years, with a 45% increase in prices, bidding wars, and a scarcity of homes. However, the frenzy ended last spring when mortgage rates doubled, making it costly to buy a home and freezing buyers out of the market. This year, as the market begins to recover, buyers hope to secure homes at lower prices, but instead, they encounter a still-miserable situation.

The housing market has arrived at a standoff, with buyers unwilling to overpay, and sellers unwilling to lower their prices. New listings were down 20% in March compared to the previous year, and the houses available tend to be overpriced or in need of work. Additionally, sale prices are still hovering near historic highs, and interest rates are above 6%, making it expensive to buy a home and risky to sell one.

With so little inventory and more competition for available homes, prices are not likely to fall, and buyers are finding it difficult to purchase their desired properties. However, some analysts anticipate that prices will start to rise again as potential sellers who have held off on listing their homes decide to sell, and buyers become acclimated to the higher interest rates and come around to the idea of paying more.