North American Real Estate Market Trends 2023

The US real estate market is expected to slow in 2023 as it begins its first correction in over a decade. Heading into 2023, real estate experts expect mortgage rates to stabilize at around 6%, home sales to decline, and average home prices to continue trending down 20% in some markets.

With a lot going on across the country and the world, and the cost of everything going up, you may be wondering how this is impacting real estate. Whether you’re selling, buying, or staying here, here are the real estate trends to watch in 2023.

Risky Buying Options Are More Accessible

Well, let’s talk about some of the other trendy and creative ways to buy a home.

Down Payment Loans

A risky trend is taking out a personal loan to pay your down payment. This is like buying a house at a 0% discount. You’re renting the entire house – except for that, you’re renting from two different companies at two different interest rates.
Rent-to-Own

If you’re dying to buy a home but can’t afford it yet, some sellers offer rent-to-own arrangements. In the deal, you agree to rent a house for some time (months to years) before becoming an owner.

Home Inventory Is Low but Growing

The real estate market has been plagued with inventory shortages for some time. That simply means there weren’t enough homes for sale to meet buyer demand, a property trend that only got worse during the madness of 2020. But trends could change. Stocks have trended upwards since May 2022, and in November he saw his biggest monthly jump since 2022.

Mortgage Interest Rates Are Higher

Average mortgage interest rates (the rate that lenders charge as a percentage of your loan amount) was the lowest ever in 2021.

With the Federal Reserve raising interest rates in 2022, the average interest rate on 15-year fixed-rate mortgages rose from 2.8% in January 2022 to 6.36% in October. This number is the highest level in 15 years! Interest rates on 30-year fixed-rate mortgages hit 7.08% on Oct. 8.

Annual Home Values Are Still Rising

Real estate prices are rising every year. The median active listed home price in November 2022 increased by 11% compared to November 2021 to $416,000. 5,6 This means that 2023 is likely to be a year of much slower growth.

North American Real Estate Market Trends 2023 02

Online Real Estate Services Are Growing

Using a Virtual Agent

Hybrid services aim to cut traditional agent fees by getting things done online. This gives you some of the services you would get if you worked with an agent, but at a fraction of the cost. It is like a middle ground between selling with an agent and selling yourself.
Mobile or Online Closings

Digital technology also facilitates the handling of virtual documents required for trading. For example, many private transactions now use e-signature apps and remote online notarization to streamline the process.
In other words, you can buy and sell homes this year without getting out of your car or taking off your robes and slippers.
Third-Party Buyers

Talk to companies about the house you want to sell. They buy it from you, put some money into it to resell it at a higher price, and do all the finishing touches like inspection, repair, and display at home.

Whether you’re selling or buying, working with an experienced agent can help you take advantage of current real estate market trends. Our team will match you with the best-performing agents to recommend in your area.