Housing market forecast flips as home prices and rents now seen falling

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Rattled housing market prompts reversal on 2023 forecasts with home prices and rents now expected to fall

Realtor.com has re-examined its previous housing market predictions for this year and pointed them in the opposite direction.average home list prices to drop 0.6% from last year, compared to its prior prediction of a 5.4% year-over-year rise in 2023.

To be sure, its initial outlook largely went against the grain of what other analysts were saying would happen, and Chief Economist Danielle Hale seemed to acknowledge that. However, prices did fall this year, particularly in the most expensive regions, like the West, as buyers balked at high prices and mortgage rates, Realtor.com said."Home costs are still going to be higher for buyers in 2023 because home price declines are very mild and not universal," Hale said."Some areas are still seeing home prices going up and mortgage rates are still very high."saw prices plunge as much as 10%, in part as tech layoffs diminished demand.

 

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