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North American Real Estate Market Trends 2023

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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.

North American Real Estate Market Trends 2023 FAQs

WHAT ARE THE NORTH AMERICAN REAL ESTATE MARKET TRENDS IN 2023?

Current real estate trends through 2023 are that the market is slowing down and closer to normal. Property prices are still rising year-on-year and 2023 will be a year of fairly modest growth. Housing inventory is still low, but data suggests it will continue to rise through 2023. There are also some uptrends to watch. Buying and selling real estate via online services is becoming more and more popular, but it’s never smart

WILL MORTGAGE INTEREST RATES GO DOWN?

Real estate experts expect interest rates to peak in 2023 and then decline slowly.

IS NOW A SUITABLE TIME TO INVEST IN THE REAL ESTATE MARKET?

Yes. Real estate always has value, no matter what happens in the market. And property values continue to grow, albeit not by the large percentages seen in 2021 and 2022.

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This website is provided for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. No securities regulatory authority has assessed the merits of these securities or the information contained in this website. Potential Investors should conduct their own due diligence before investing. All statements in this website, other than statements of historical fact, that address events or developments that Canguard expects to occur are forward looking statement. These forward-looking statements generally can be identified by the use of words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe” or “continue”, or the negative thereof, or similar variations. Please see the Offering Memorandum for a complete description of the risks associated with investing in Canguard Mortgage Investment Corporation. Purchase of Canguard Shares may be made through Kite Financial Solutions Ltd or a Dealer/Advisor.

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