Housing in the USA has reached very high prices, but what will they be like next year? We share with you the market predictions and what is known about 2023.
Mortgage rates in the U.S. have risen so much, following the Federal Reserve's (Fed) benchmark interest rate hike, that average buyers of a property at the median price will now spend more than a quarter of their annual income on mortgage payments alone, according to estimates from the firm Capital Economics.
Prices started to rise during the pandemic, but what will they look like in 2023? Will they go down?
Market predictions.
High prices in the U.S. housing market will plunge in the coming months as cash-strapped prospective homebuyers face rising mortgage rates. The mortgage rate on 30-year fixed loans reached 7.10% according to Mortgage News Daily. The same mortgage rate hovered below 3.5% in January.
According to projections, home prices are expected to decline by approximately 5% by mid-2023. Property values were previously expected to remain unchanged during that same period.
The deterioration in affordability will exclude many potential buyers from the market. That will reduce competition for homes, and sellers will eventually find it necessary to accept a lower price for their property.
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