flexiblefullpage - default
Currently Reading

What Can Homebuyers Expect in 2023?—Zillow’s Predictions for the Year Ahead

Advertisement
billboard - default
Market Data + Trends

What Can Homebuyers Expect in 2023?—Zillow’s Predictions for the Year Ahead

A widespread housing affordability crisis is forcing homebuyers to make unprecedented sacrifices in the hunt for homeownership, and while that trend may continue in 2023, a shifting market could offer some relief


December 2, 2022
Calendar blocks flipping from 2022 to 2023 with small wooden houses in background
Image: Stock.adobe.com

As an affordability crisis widens at the close of 2022, housing experts say homebuyers will likely take a more cost-conscious approach to home purchases in the year ahead. While the Sun Belt has been a magnet for migrating homebuyers throughout the past several years, Midwestern markets are quickly heating up with lower housing costs and a greater stockpile of inventory.

As home prices continue to reach new highs across the country, those seeking homeownership are increasingly buying with friends and family, but according to Zillow, housing affordability will stabilize in 2023 as inflation cools, mortgage rates fall, and list prices plateau.

Zillow expects national home values to remain relatively flat next year, and even fall in the most affordability-challenged markets. Mortgage rates, highly impactful to the mortgage payment, are seeing some recent and encouraging progress downwards as inflation and labor market tightness show small signs of easing, enough to lead some to suggest the Federal Reserve may ease its aggressive monetary contraction. If we’ve actually turned the corner on inflation, that should continue. Volatility in mortgage rates could continue through early 2023, however, an ongoing challenge for those who saw their ability to qualify for the same mortgage change on a monthly or even weekly basis this summer.

Read more

Related Stories

Affordability

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

Builders

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

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category




Advertisement
native2 - default
Advertisement
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
Subscribe
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.