Florida home values rose more in 2022 than in any other state, according to data analyzed from Zillow.

This year, REALTORS® can also expect to see lengthier “days on market”. It is anticipated that buyers will no longer struggle with various other offers, providing additional time and options. Agents may see additional properties taken off the market and listed for rent in its place for more affordable prices as well.

A reoccuring trend we saw during the pandemicera linking affordability challenges to homebuying is derived from higher rates, which indicates more buyers will purchase homes with support of friends and family versus on their own. Also, more homeowners will develop into first-time landlords as they hold onto investment properties formerly acquired with track record low mortgage rates.

Additionally, according to Taylor Marr, deputy chief economist at Redfin, “High homeowner equity and a resilient job market will stave off a wave of foreclosures.” Even though home purchases continue to be too expensive for many buyers due to swift rates increases since 2022 and the major reason for pull back during sales, prices still remain greater in comparison to prepandemic costs.

While the housing market has been operating at a chaotic tempo over the last two years, mild recovery is expected to take place in 2023. Although the national inflation’s rate is slowing, it’s possible that price growth will wane into this year, fluctuating significantly around the country and also dependent on the region.