Coming off a volatile 2022, the National Association of Realtors (NAR) had its annual conference last month and released its outlook for the 2023 real estate market. Here are the key predictions and what we’re looking forward to in 2023:
- Home sales will fall by roughly 6.8% compared to 2022, attributed to owners unwilling to trade in for a higher interest rate and economic uncertainty.
- Home prices will remain stable with an expected .3% increase in median home price nationally.
- Mortgage rates will settle around 5.7% (possibly lower) by year-end for 30-year fixed mortgages (compared to rates topping 7% at the end of 2022.)
- Rental prices will increase by 5% (compared to a 7% increase in 2022)
Overall, experts agree that 2023 will represent a more “normalized” market similar to pre-pandemic days. With rental increases outpacing anticipated price growth, and interest rates adjusting downward from the spike we saw in late 2022, 2023 will be a great time to think about buying, particularly for first-time homebuyers.
Additionally, in the D.C. area specifically, we are still seeing near record-low inventory with plenty of buyers in the market, so if you’re thinking about selling soon, let’s talk!
If you have questions about the D.C. market, 2023 predictions, or your own home value, we encourage you to contact us for a confidential conversation!