In a typical housing market, the spring and summer seasons are usually marked by higher prices, increased sales volume, and more homes coming onto the market, but today’s market is far from normal. Those historical patterns have been upended since 2020. However, according to NerdWallet, some housing barometers are pointing toward a return to normalcy, at least to a small but promising extent.
Prices are typically lower at the start of the year and increase at a steady rate into the summer months. In 2020 and 2021, home prices peaked in December, and throughout 2022, housing costs fell in the nation’s most overpriced metros. This year, however, prices are following a more traditional pattern and reaching their highest point over the summer before an anticipated decline in the fall.
Price growth this year isn’t expected to match the unusually robust ascent of 2020 and 2021 but likely won’t decrease in the latter half of the year as dramatically as it did in 2022, either. Buyers are becoming accustomed to higher rates as the new normal, and unlike last year when those rates were a shock, they will continue to shop for homes in the latter half of 2023. This means you may see prices peak in the summer before a slight decline in the fall, resembling a more traditional seasonal path.
Advertisement
Related Stories
Market Data + Trends
Vacation and Investment Home Market Insights
A recent report finds beach homes to be the most sought-after vacation-home type and that the investment potential of a second home is an important factor in the purchasing decision
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
Affordability
What Is the Relationship Between Urban vs. Suburban Development and Affordability?
A new paper from Harvard's Joint Center looks at whether expanding the supply of suburban housing could, in turn, help make dense urban areas more affordable