The past three years have been painful for price-conscious consumers, but they've been a boon for homeowners. The median existing-home sale price in December was $366,900, a 38% jump since January 2020, according to the National Association of Realtors.
But annual double-digit home price gainsa hallmark of the pandemic era-are going away, economists say. Home sale prices stalled after mortgage rates spiked in 2022, and some forecasters predict that prices will fall in 2023. Lawrence Yun, chief economist at the NAR, expects the median sale price to stay mainly flat. "Housing affordability has gotten out of hand, and we're going to see price corrections as home supply increases and mortgage rates stabilize," Yun says.
Freddie Mac forecasts a price decline of 0.2%, and Redfin projects the median sale price will drop by roughly 4%. But economists at CoreLogic are more optimistic, predicting that home prices will grow 2.8% from November 2022 to November 2023. And Danielle Hale, Realtor .com's chief economist, foresees median home prices rising 5.4% this year. "We think home prices are going to lose momentum but still go up," she says. "Inventory is going to increase in 2023, but it's still going to trail pre-pandemic levels, so I don't think it's going to be a buyer's bonanza."
As for new construction, the median price of new houses sold in December 2022 was $442,100, up from $430,500 in January 2022. But don’t expect price cuts this year. Although new construction is expected to pick up, “builders will not be delivering enough housing to close the housing shortfall,” says Lisa Sturtevant, chief economist at Bright MLS, a multiple listing service in six Mid-Atlantic states and Washington, D.C.
Bu hikaye Kiplinger's Personal Finance dergisinin April 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Kiplinger's Personal Finance dergisinin April 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
MAKING A DIFFERENCE IN THE LIVES OF DISABLED VETERANS
He suffered grave injuries in the line of duty. Now he helps other veterans who have disabilities.
DO YOU NEED UMBRELLA INSURANCE?
A policy can protect you from financially devastating events.
Navigating Finances as a Blended Family
Money matters can get complicated when two families unite. Planning is key.
BREAKING UP WITH YOUR BROKER
Be aware of these challenges when you move your money to a new home.
CHOOSE A MEDICARE PLAN THAT'S RIGHT FOR YOU
Consider your health care needs over the long term as you weigh costs and coverage.
Keep Faith in These Stocks
IN 1997, I coined the phrase “faith-based investing.” It has nothing to do with religion or with picking stocks at random.
OUR ESG PICKS ARE THRIVING
Despite an ongoing backlash, our favorite stocks and funds focused on environmental, social and corporate governance issues had a good year overall.
MONEY MANNERS FOR THE MODERN AGE
The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.
ELECTION 2024: POLITICS AND YOUR PORTFOLIO
Who wins the White House matters—but only at the margins when it comes to your investments.
YOUR GUIDE TO OPEN ENROLLMENT
With health care costs on the rise, it’s critical to select a plan that fits your needs at the right price.