Most economists predict the U.S. will become a buyer's housing market in 2023 due to several factors, including:
Ernesto Diaz
- Rising interest rates: As interest rates increase, the cost of borrowing money to purchase a home becomes more expensive. This can make homes less affordable and reduce demand.
- Increased supply: As the economy improves and more people feel confident about their job security, builders are expected to ramp up construction, increasing the supply of homes for sale.
- Slowing price growth: Home prices have risen rapidly in recent years, making homes less affordable for many people. As demand cools, economists expect to see slower price growth, creating a more balanced market in favor of buyers.
- Demographic shifts: As the baby boomer generation continues to age, many are expected to downsize or sell their homes, putting additional properties on the market.
Overall, these factors are expected to create a more balanced market, giving home buyers more negotiating power and a wider selection of homes to choose from. However, it's important to keep in mind that local market conditions can vary and what holds true in one region may not hold true in another.
