Last year I predicted the Jets were going to the Super Bowl!...I was wrong. I also predicted that FTX was going to be huge… I was wrong again. When it comes to my skill at predictions, I am somewhere between Charles Barkley and Donald Trump. However, when NAR economist Lawrence Yun makes a prediction, you can take that to the bank. Recently Mr. Yun predicted that mortgage rates hit their peak in 2022, prices will remain stable, and home sales will decline by 7% in 2023.
Yun forecasted that 4.78 million existing homes will be sold this year, which is a decline of 6.8% compared to the 5.13 million homes sold nationally in 2022. He predicts the 30-year fixed rate to settle at 5.7% over this year; much welcomed news to the millions of buyers opting to sit out the rate increases in the Fall of ’22.
“Half of the country may experience small price gains, while the other half may see slight price declines,” Yun said. Looks to this broker like Westchester is in for some “price corrections” in 2023. HGAR reported a 16.8 decline in closed sales for single family homes in November over the last 12 months. However, prices were up 4.5% over the same period.
“The demand for housing continues to outpace supply,” Yun said. “The economic conditions in place in the top 10 U.S. markets, all of which are located in the South, provide the support for home prices to climb by at least 5% in 2023.”
New York did not make The National Association of Realtors top 10 real estate markets to watch. So… our region might see declines in activity and prices this year. But what do I know? I predict the New York Knicks will defeat the Dallas Mavericks in Game 6 of the NBA Finals and Jay-Z will sign me to a 360 deal on Roc-A-Fella Records to release my new single entitled “Cuff this House.”… It could happen. If you need more predictions… no cap … AskHollingsworth.
Image Source: National Association of Realtors