Here’s what Compass agents predict for the housing market in 2023 based on an online survey of 443 agents nationwide:
- Compass agents predict a greater demand for urban living, condos and shared amenities in 2023
- Cities are becoming more popular now that the pandemic has faded and employees are returning to the office more regularly.
- Smaller and more efficient living will grow in appeal
- More than 85% of Compass agents predict a balanced national market or one tilted in the buyer’s favor
- A majority of Compass agents said they predict mortgage rates to end 2023 in the 5%-6% range
- More than two-thirds of Compass agents said they predict the national home price growth to stay about the same as in 2022 with only slight declines
What does this mean?
Now that the pandemic has mostly faded, the market has become more balanced, shifting from an extreme seller’s market to one tilted more in the buyer’s favor. While mortgage rates rose faster than ever last year, this year will likely see lower rates, though still much higher than rates were in 2021-early 2022. In turn, home prices are predicted to stay about the same, with slight declines in some markets but nothing major. Urban living will become more desirable with more employees returning to offices and smaller, more efficient living growing in appeal. In turn, condos and shared amenities will see greater demand. Curious what the market forecast for your neighborhood is? Reach out for a free home valuation!
