Trends to Expect in the US Housing Market

As an outcome of the COVID pandemic, several aspects of the housing market were affected in the US. Mortgage rates plunged to record lows, and the price of homes increased dramatically.

As a result, Americans bought larger homes in record numbers.

In 2022, the housing market cooled off significantly following record-breaking conditions in 2020 and 2021.

Here are some real estate trends you need to watch in 2023

Mortgage Rates to Increase

It is not only gas prices that are rising. Although the war in Ukraine briefly lowered interest rates, other factors are pushing the rates higher. According to the Federal Reserve, a rate hike is imminent.

In January of last year, mortgage experts had predicted that rates would continue to rise from the all-time low of 2.93 percent. They plunged in 2020, but this year, almost everyone worldwide is expecting the rates to increase.

Slower Price Appreciation

Since March 2020, the pandemic’s start, the median price of homes sold by Realtors has increased by 29 percent, from $280,700 to $362,800. The price has remained steady at $350,000 since then.

Reasonable Housing to Remain Out of Reach for Many

The COVID pandemic has worsened housing affordability by taking money from Americans’ paychecks and causing a housing shortage. As a countertrend to the crisis, mortgage rates have sunk to record lows, softening the blow for buyers.

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