flexiblefullpage - default
Currently Reading

Can Homebuyers Expect a More Balanced Market in 2023?

billboard - default
Market Data + Trends

Can Homebuyers Expect a More Balanced Market in 2023?

After years of unprecedented price volatility and historic hurdles for homebuyers, market experts say more stability is expected in 2023

November 30, 2022
White house with red roof balanced on scale with stack of coins
Image: Stock.adobe.com

After years of wild fluctuations and volatility, homebuyers, sellers, owners, and renters can expect a more stable housing market in 2023, but those hoping for financial relief will likely be disappointed. Realtor.com’s annual housing forecast sets the stage for a year of climbing home and rental prices, and mortgage rates are expected to remain high, though any further gains will be modest in comparison to runaway growth seen throughout much of 2022.

As buyers continue to confront historically high home prices paired with soaring interest rates, sales will continue to fall in 2023, but rising inventory could convince some house hunters to make their way back into the for-sale market.

Buyers, particularly first-timers, can’t afford to offer as much for a home when their monthly payments are inflated by higher interest rates. But home prices next year aren’t expected to crash.

Nationally, Realtor.com predicts they’ll rise 5.4% year over year in 2023. That’s still going to hurt—but not as much as the double-digit increases seen during the COVID-19 pandemic.

Median monthly mortgage payments are expected to be about 28% larger than this year and twice as large as they were in 2021. To put into perspective how tapped-out homebuyers are, monthly mortgage payments were about three-quarters larger in late October than they were in 2021. (The latter figure depended on that week’s average mortgage rates.)

Read more

Related Stories


Buyers Cite Unaffordable Prices as Biggest Hurdle to Homeownership in Q4 2022

Elevated home prices continue to pose an obstacle for house hunters, but most are persevering 

Market Data + Trends

Despite an Ever-Widening Housing Shortage, Builders Are Slowing Their Pace of New Construction

The U.S. needs to add more than 1 million new housing units to chip away at a worsening supply deficit, but housing starts are expected to slow in the year ahead


Does Rebounding Home Builder Confidence Signal an Upcoming Economic Growth Cycle?

Despite falling demand from priced out buyers, home builders remain optimistic about the year ahead, and experts say that rising sentiment may point toward a breakout year for a recovering economy

boombox1 -
native1 - default
halfpage2 -

More in Category

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.