Do you know what’s going to happen in the real estate market in 2023? Spoiler alert! It’s all about inflation.
Two key factors will shape the 2023 housing market:
- Mortgage Rates
The big factor in the real estate market in 2023 is inflation.
Here’s the thing, mortgage rates rose dramatically in 2022 (but Home Equity grew despite a cooled Housing Market). That was due to the Federal Reserve’s actions to try and bring inflation down. There are some signs that inflation maybe starting to cool, but where the market goes from here really depends on the Federal Reserve’s ability to keep inflation under control. If inflation continues to fall like we have seen lately, then mortgage rates will likely fall as well.
If there is anything that we all want in the real estate industry, then it is stability and predictability. If inflation eases, then we may see that with mortgage rates, too. In the mean time, plan for some volatility.
Remember, 2023 is going to be all about that word “inflation.”
We will keep following the latest information on the real estate market at Barrington Group Real Estate, so if you have questions on what we can expect this year, then let’s connect.
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Give me a call at 720.244.1308 or email me at Anne@BarringtonGroupRE.com.