Economists project 2023 will mark the slowest home sales year since the housing bubble burst in 2008. Redfin estimated there will only be roughly 4.1 million sales of existing homes across the nation by year's end due to persistently high mortgage rates — now hovering at 7.63% — and low inventory scaring buyers away. Just last month, sales retreated 15.4% from the previous year, according to data from the National Association of Realtors.
The last time sales were this low was during the Great Recession, when the tough economic conditions and slow demand drove home prices down as much as 30% year over year in some parts of the country, according to Zhao. In 2008, the housing market crashed due to a combination of the subprime mortgage crisis, high levels of debt and a lack of financial regulation, according to Norada Real Estate Investments.