The real estate market crash in 2008, led to around 3.1 million Americans filing for foreclosure in one year.
It’s normal for people to be nervous about another market crash. Many people were displaced during the great recession and it’s known that housing trends tend to circle back around.
In the last several months we’ve seen interest rates increase dramatically, which leads everyone to question, “is another housing market crash coming?”. In this article, we will tell you about the 2023 housing predictions and what you should do.
Supply and Demand
In 2020 and 2021, people were getting multiple, over-asking price offers on their houses only hours after putting them on the market. Those days are gone. The demand for homes has slowed, which has allowed the housing supply to being to catch up.
There’s no need to panic because demand has slowed. Some experts believe the housing market will correct itself instead of crashing. The majority of people are also in better financial standing than people in ’08.
At this time the housing market is still growing; it doesn’t seem that way because it’s not growing as fast as it was. However, slower growth is better as it’s maintainable and less likely to lead to a housing market crash.
Housing Inventory in 2023
While demand has slowed, it has not stopped. Homes are still getting multiple offers, but there is more room for negotiations for buyers.
New construction has also slowed down a bit. This will keep the supply at a maintainable level. It’s not ideal when hundreds of houses are sitting empty.
If you’re considering purchasing a home in 2023, there will be inventory available. The same goes if you want to sell your property, it will take longer than it would have last year, but it will still sell and close to market value.
Housing Recession
The soaring interest rates have discouraged people as they have increased significantly in the last few months. If you follow housing trends, you know the market is constantly changing; however, it’s not likely there will be a crash in 2023 or even a few years from now.
Lenders have stickers requirements which will decrease the number of foreclosures. Demand is still slightly higher than supply, which will keep us out of a crash.
As a homeowner, you can rest easy knowing your home’s value is going to plummet. If you’re a buyer waiting to get the best deal in the recession, you may be waiting for a few more years.
Housing Market Crash
While it’s great to be prepared, you don’t need to start panicking about a housing market crash. The US housing market cooling off doesn’t always indicate a recession; however, the media will tell you differently.
Instead of watching the news and headlines that tell you that your property is going to decrease in value, talk to a professional. Our team of experts studies real estate trends and can help you sell or purchase a home. Contact us here for advice on the current and future market.