Emerging Home Trends for 2023

What to Expect from the Housing Market this Year

by Greater Tampa REALTORS®

Navigating the 2023 market will require working diligently with your team and prospective clients. With new tech introduced in the everchanging market, many sellers may see the allure of saving on REALTOR® fees when selling with an iBuyer, however, better offers and increased ease will come with working alongside a traditional agent. REALTORS® will continue to be the experts that sellers and homebuyers need. To keep buyers and sellers coming back, agents must stay up to date with the trends to continue working with determination.

As we saw in the last few quarters of 2022, beyond the setbacks of supply chain issues with homebuilders, interest rates skyrocketed to a 40-year high, which greatly stalled market activity. These rates are now being deemed the new standard, which is expected to either flatten or dip. We began this year with nearly 6.5% national mortgage rate. This upward trend is anticipated to last at least throughout the first two quarters of 2023. If the Feds do decrease this number closer to 5%, agents can anticipate a modest boom in which the low rates will encourage housing demand, thus drastically improving home sales.

According to NAR Chief Economist Lawrence, “Housing inventory is expected to remain tight in 2023, with housing starts below historical averages and fewer homeowners willing to sell.” The country's average housing supply remains low, as buyers who purchased homes in some recent years with exceptionally low mortgage rates are remaining where they are.