Homebuyers get early Christmas gift

Plus, where home price growth is ice cold

Realtor.com economists predict that interest rates, rents, and home prices will stay high in 2023 even as inventory rises. While buyers will enjoy advantages such as a growing number of homes for sale, costs will remain high. This unusual market forecast is due to years of underbuilding and post-pandemic demographic shifts.

Check out these market predictions:

• Mortgage rates will average 7.4%, with hikes early in the year followed by a slight retreat to 7.1% by year’s end

• Inventory will increase 22.8% YOY as the changing market dynamics that began last summer accelerate.

• Home prices won’t come down, but home price growth will moderate to single digits (5.4%) for the first time since 2020

Our take

It’s great to see predictions that prove once again that we aren’t anywhere near 2008. Increasing inventory will be good for the market. As long as mortgage rates don’t do something unexpected, there will still be plenty of transactions. We know next year can feel incredibly unpredictable right now, so we are doing what we do best: building our funnel, studying the market, and putting in the work. If your business is slow right now, use this time to make a plan of attack for January 2023!

Excerpt of newsletter compiled for The Blueprint — Full edition for 12/2/22 available here.