Gloomy prediction for home buyers: Prices will continue to rise in 2023, despite a cooling housing market

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Realtor.com’s housing forecast anticipates that affordability will remain an issue in 2023, particularly among first-time buyers.

Home sales are slowing as interest rates rise, and prices are also cooling as buyers are put off by interest rates hovering around 7%, double what they were this time last year. But Realtor.com’s 2023 housing-market forecast is predicting that affordability will remain an issue in 2023.

It said the rise in home prices will moderate to a single-digit yearly pace for the first time since 2020. — Danielle Hale, Realtor.com “It will be a challenging year for both buyers and sellers, but an important one in setting the stage for home sales to return to a sustainable pace over the next two to three years,” she added. “Higher costs will lead to fewer closings.”

 

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