Highs and Lows of the 2023 Housing Market
By: Kaydee Ambas · June 20, 2023 · Reading Time: 3 minutes
Prices Soar, Sales Sizzle
A recent real estate report from Zillow (Z) predicts 5% growth in home values this year. Housing inventory remains limited, which in turn continues to push property prices skyward and inflate home value appreciation.
Along with the ascent in prices, the real estate market is witnessing a descent in sales volume. Zillow’s estimates peg the number of existing home sales at 4.2 million for the year 2023. This indicates a sharp 17% dip from 2022.
The Ghost of Listings Past
Historically speaking, May 2023 was a rather bleak month for home listings. Zillow’s data records, dating back to 2018, have never shown a May with such few active for-sale listings.
The shortage of homes, paired with a mere trickle of new listings entering the market, has consequently led to a speedy appreciation in home values. This rapid surge marks the swiftest month-over-month increase in close to a year.
Despite limited inventory, buyers remain undeterred, keen to purchase homes. But with dwindling choices and mounting prices, the scale of demand still well outweighs supply.
Mortgage Ebb, Housing Flow
For prospective homeowners, the future seems to be a mix of lows and highs.
The cloud of low inventory and soaring prices continues to create a competitive and expensive market for those looking to buy. On the plus side, Zillow’s forecast hints at potential declines in mortgage rates, which could increase demand and make financing homes more affordable.
Ultimately, reports like Zillow’s are helpful regardless of the specific data they show. By helping you to understand the underlying forces shaping the real estate market and challenging economic landscape, you can make a more informed buying decision, whatever it may be.
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