Is the housing market going to crash in 2023?

Most economists and forecasters do not believe the housing market is going to crash in 2023.

There may be a correction, and there may be a decline in housing values, but a full-on crash is not expected by most who study the subject.

After the huge increase in home prices from 2004-2006, prices in 2007-2008 fell sharply, which has many people outside of the real estate industry worried.

The five reasons many economists don’t think the same thing is going to happen in 2023?

  1. The supply of homes available is limited. There still aren’t many homes for sale! This makes economists believe there won’t be a quick fall in prices, because buyers still may be in competition for available homes to buy.
  2. Builders were not able to build enough houses to help with demand. Economists don’t see builders being able to build too much to oversupply as they did 15 years ago, so there will still be a supply issue.
  3. Many people still want to own a home. The researchers point to Millennials, who they say are in their prime home buying years.
  4. Lending standards have remained stringent. Unlike 2004-6, when homebuyers could potentially obtain a mortgage without proving income, assets, credit history or documentation, lenders have been using very strict and tough standards for loans.
  5. An influx of foreclosures may not be likely. More homeowners have equity in their homes due to rising home prices, low interest rates, and stringent loan requirements than in 2004-6.

While there may be a decline in home prices from the last few years, most forecasters do not believe there will be a housing market crash in 2023.

Thank you to BankRate and Yahoo Finance for the information.

Please note that this is just a forecast. Twenty-seven economists had 27 different forecasts for the 2023 Housing Market at the end of 2022 and beginning of 2023.

If you are considering selling your Timonium home, please contact me. When you hire me, I can help you navigate this changing real estate market!