There’s no easy answer when it comes to predicting whether or not home prices will drop in 2023. Various factors – from the state of the economy to interest rates – can impact the housing market and drive prices up or down.
That said, there are a few things we can look at to get a better idea of what might happen in the coming year. Many experts predict that job growth will slow down in 2023. Slower job growth could lead to fewer people buying homes, potentially putting downward pressure on prices. Additionally, mortgage rates may rise slightly next year, discouraging buyers and leading to lower costs.
Of course, it’s impossible to say what will happen with home prices in 2023. Looking at Massachusetts, according to Boston.com, single-family and condominium home sales are down compared to this time last year. However, home sales prices are higher than a year ago.
Many in the real estate industry note that the market is going through a correction. People still need a place to live, however. For now, the best advice seems to be to create a budget and stick to it. If a home comes along in an area you love, if you love the house and it meets your needs, it might be right for you based on your budget.
It is essential to know that it is still a seller’s market where the demand for housing outweighs the available inventory of homes. Sellers may not be getting as many offers as they would have last year, and they may need to be a little flexible, but the ball is still in their court for now.