{"id":41980,"date":"2023-01-28T13:09:53","date_gmt":"2023-01-28T11:09:53","guid":{"rendered":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/?p=41980"},"modified":"2023-02-14T17:21:43","modified_gmt":"2023-02-14T15:21:43","slug":"essential-outlook-for-residential-buyers-and-sellers-in-2023","status":"publish","type":"post","link":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2023\/01\/28\/essential-outlook-for-residential-buyers-and-sellers-in-2023\/","title":{"rendered":"Essential Residential Outlook for Buyers & Sellers in 2023"},"content":{"rendered":"\n

The housing market has seen its fair share of ups and downs in the last couple of years. As such, both buyers and sellers are eager to learn what to expect in the world of real estate in 2023.<\/p>\n\n\n\n

Specifically, many are predicting that house prices will drop. This is due to a combination of factors, including a cost of living that\u2019s still high; inflation and mortgage rates that are continuing to climb; and a slowdown in the starts of new, single family home construction. And, while it\u2019s not certain that we\u2019ll see a buyer\u2019s market nationwide, a modest decline in prices is likely, according to Fixr.com\u2019s Housing Market Predictions report<\/a>.<\/p>\n\n\n\n

Of course, when it comes to knowing what the future holds for the housing market, our best bet is to listen to forecasts from top experts at the forefront of the industry. Here\u2019s what some of them are predicting.<\/p>\n\n\n\n

<\/span><\/a>House Prices Will Go Down \u2014 But Not in All Areas<\/span><\/h2>\n\n\n\n

Mortgage and interest rate increases are set to slow demand somewhat as housing becomes unaffordable for many. This will then cause house prices to drop.<\/p>\n\n\n\n

Robert Dietz, chief economist at the National Association of Home Builders (NAHB), said that his organization was forecasting home price declines through the end of 2023. In fact, he predicts that house prices could fall as much as 10% from peak in typical markets. Meanwhile, Rayan Rafay, CFO and COO of Fraction, believes that we\u2019ll see a general \u201cflat to modest decline in home prices\u201d across the country.<\/p>\n\n\n\n

This is good news for buyers who may have been recently priced out of the market. Garrett Derderian, director of market intelligence at Serhant, thinks that Mountain West and West Coast homes are most likely to depreciate at around 10% to 20% at most.<\/p>\n\n\n\n

However, that may not be the case for all areas of the country. For instance, price stability is expected in East Coast markets (like New York City) due to the \u201climited number of turnkey homes for sale,\u201d per Derderian. He said the same can also be said for in-demand markets, like Florida, which \u201care unlikely to see a major pullback in values.\u201d<\/p>\n\n\n\n

<\/span><\/a>Single Family Home Construction Expected to Slow, While Build-to-Rent Picks Up the Pace<\/span><\/h2>\n\n\n\n

As one segment is primed to continue to boom, the other is set to take a temporary hit. In particular, build-to-rent homes have seen a major rise in numbers in recent years \u2014 and that number will only increase further. For perspective, Dietz reported that 10% of all home construction were build-to-rent homes in the second quarter of 2022.<\/p>\n\n\n\n

At the same time, new single family home construction is set slow in 2023. That\u2019s because starts were already down already in 2022 \u2014 and this downturn is predicted to continue. Supply chain issues also rumble on, as well as labor shortages. All of these factors have led to lower demand, partly due to the volatile building materials market. That said, Dietz stated that the NAHB was still predicting a housing rebound in 2024.<\/p>\n\n\n\n

<\/span><\/a>Wider Economy Will Feel the Heat<\/span><\/h2>\n\n\n\n

As the housing market continues to navigate its way out of the resulting fallout from the pandemic, the wider economy is expected to continue to feel the pressure. To that end, high inflation and interest rates will affect people across the nation.<\/p>\n\n\n\n

\u201cEconomies and real estate markets will be deeply affected for years,\u201d said Baron Christopher Hansen, real estate consultant at Coldwell Banker Realty.<\/p>\n\n\n\n

Rafay agreed: \u201cEconomic stagnation will be difficult to quickly exit from.\u201d<\/p>\n\n\n\n

Plus, ongoing issues around labor shortages will continue to affect both real estate, construction and the economy as a whole.<\/p>\n\n\n\n

<\/span><\/a>Temporary Housing Downturn Expected<\/span><\/h2>\n\n\n\n

While home sales are predicted to fall by as much as 7%<\/a>, no major housing market crashes are expected. Although 2023 might be slightly better for buyers than the years since the pandemic began, many experts are predicting a housing market rebound for 2024.<\/p>\n\n\n\n

<\/span>About<\/strong><\/span><\/h3>\n\n\n
\n
\"\"<\/figure><\/div>\n\n\n

Adam Graham is an industry analyst at Fixr.com. He analyzes and writes about the real estate and home construction industries, covering a range of associated topics. He has been featured in publications such as Better Homes and Gardens and The Boston Globe, and written for various outlets including the National Association of Realtors, and Insurance News Net Magazine.<\/p>\n\n\n\n

<\/div>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The housing market has seen its fair share of ups and downs in the last couple of years. As such, both buyers and sellers are eager to learn what to expect in the world of real estate in 2023.<\/p>\n","protected":false},"author":49,"featured_media":41984,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[6637,8283,388],"tags":[7],"class_list":["post-41980","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-expert-insight","category-national","category-real-estate-broad","tag-residential-sales"],"yoast_head":"\nEssential Residential Outlook for Buyers & Sellers in 2023 | CommercialEdge<\/title>\n<meta name=\"description\" content=\"The housing market has seen its fair share of ups and downs in the last couple of years. As such, both buyers and sellers are eager to learn what to expect in the world of real estate in 2023.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2023\/01\/28\/essential-outlook-for-residential-buyers-and-sellers-in-2023\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Essential Residential Outlook for Buyers & Sellers in 2023\" \/>\n<meta property=\"og:description\" content=\"The housing market has seen its fair share of ups and downs in the last couple of years. As such, both buyers and sellers are eager to learn what to expect in the world of real estate in 2023.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2023\/01\/28\/essential-outlook-for-residential-buyers-and-sellers-in-2023\/\" \/>\n<meta property=\"og:site_name\" content=\"PropertyShark Real Estate Blog\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-28T11:09:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-14T15:21:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-content\/uploads\/sites\/98\/2022\/12\/Dec15-1155x770-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1155\" \/>\n\t<meta property=\"og:image:height\" content=\"770\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Eliza Theiss\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Eliza Theiss\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Essential Residential Outlook for Buyers & Sellers in 2023 | CommercialEdge","description":"The housing market has seen its fair share of ups and downs in the last couple of years. As such, both buyers and sellers are eager to learn what to expect in the world of real estate in 2023.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2023\/01\/28\/essential-outlook-for-residential-buyers-and-sellers-in-2023\/","og_locale":"en_US","og_type":"article","og_title":"Essential Residential Outlook for Buyers & Sellers in 2023","og_description":"The housing market has seen its fair share of ups and downs in the last couple of years. As such, both buyers and sellers are eager to learn what to expect in the world of real estate in 2023.","og_url":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2023\/01\/28\/essential-outlook-for-residential-buyers-and-sellers-in-2023\/","og_site_name":"PropertyShark Real Estate Blog","article_published_time":"2023-01-28T11:09:53+00:00","article_modified_time":"2023-02-14T15:21:43+00:00","og_image":[{"width":1155,"height":770,"url":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-content\/uploads\/sites\/98\/2022\/12\/Dec15-1155x770-1.jpg","type":"image\/jpeg"}],"author":"Eliza Theiss","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Eliza Theiss","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2023\/01\/28\/essential-outlook-for-residential-buyers-and-sellers-in-2023\/","url":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2023\/01\/28\/essential-outlook-for-residential-buyers-and-sellers-in-2023\/","name":"Essential Residential Outlook for Buyers & Sellers in 2023 | CommercialEdge","isPartOf":{"@id":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2023\/01\/28\/essential-outlook-for-residential-buyers-and-sellers-in-2023\/#primaryimage"},"image":{"@id":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2023\/01\/28\/essential-outlook-for-residential-buyers-and-sellers-in-2023\/#primaryimage"},"thumbnailUrl":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-content\/uploads\/sites\/98\/2022\/12\/Dec15-1155x770-1.jpg","datePublished":"2023-01-28T11:09:53+00:00","dateModified":"2023-02-14T15:21:43+00:00","author":{"@id":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/#\/schema\/person\/de1353a5de72f96494054df3ecca7de4"},"description":"The housing market has seen its fair share of ups and downs in the last couple of years. As such, both buyers and sellers are eager to learn what to expect in the world of real estate in 2023.","breadcrumb":{"@id":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2023\/01\/28\/essential-outlook-for-residential-buyers-and-sellers-in-2023\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2023\/01\/28\/essential-outlook-for-residential-buyers-and-sellers-in-2023\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2023\/01\/28\/essential-outlook-for-residential-buyers-and-sellers-in-2023\/#primaryimage","url":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-content\/uploads\/sites\/98\/2022\/12\/Dec15-1155x770-1.jpg","contentUrl":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-content\/uploads\/sites\/98\/2022\/12\/Dec15-1155x770-1.jpg","width":1155,"height":770},{"@type":"BreadcrumbList","@id":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2023\/01\/28\/essential-outlook-for-residential-buyers-and-sellers-in-2023\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/"},{"@type":"ListItem","position":2,"name":"Essential Residential Outlook for Buyers & Sellers in 2023"}]},{"@type":"WebSite","@id":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/#website","url":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/","name":"PropertyShark Real Estate Blog","description":"Market Reports for Real Estate Writers","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/#\/schema\/person\/de1353a5de72f96494054df3ecca7de4","name":"Eliza Theiss","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/96965f7dc4c1c5276e67c2727672b8636c299791a627dca31fda556cf0db9758?s=96&d=retro&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/96965f7dc4c1c5276e67c2727672b8636c299791a627dca31fda556cf0db9758?s=96&d=retro&r=g","caption":"Eliza Theiss"},"description":"Eliza Theiss is a senior writer reporting real estate trends in the US. Her work has been cited by CBS News, Curbed, The Los Angeles Times, and Forbes among others. With an academic background in journalism, Eliza has been covering real estate since 2012. Before joining PropertyShark, Eliza was an associate editor at Multi-Housing News and Commercial Property Executive. She has also contributed extensively to CommercialEdge. Reach her at eliza.theiss@yardi.com","url":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/author\/eliza\/"}]}},"jetpack_featured_media_url":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-content\/uploads\/sites\/98\/2022\/12\/Dec15-1155x770-1.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/posts\/41980","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/comments?post=41980"}],"version-history":[{"count":3,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/posts\/41980\/revisions"}],"predecessor-version":[{"id":42035,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/posts\/41980\/revisions\/42035"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/media\/41984"}],"wp:attachment":[{"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/media?parent=41980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/categories?post=41980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/tags?post=41980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}