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June's numbers are in! We take a look at the first half of 2023 and the highs, lows, and unexpected surprises that have characterized the housing market in the first six months of this remarkable year. Our analysis takes us through the dynamic patterns and emerging trends that continue to redefine the housing market.
We can likely predict that the rest of the year will be similar to the current trend, with a controlled growth in housing prices and demand. While the market remains competitive, cautious optimism prevails, and the consensus suggests that the housing market is unlikely to face devastating upheavals in the near future.
Our internal numbers in 2022 & 2023 compared:
*Includes adjustment for larger client base
We expect to see mortgage rates cool, which means inventory is expected to pick up throughout the second half of the year, according to Investopedia . This is sure to motivate many potential sellers who want to move, but are sitting on low interest rates for their current mortgage. An inventory boost can play a significant role in meeting the high demand in the real estate market by addressing the shortage of available homes for sale.
As we have talked about in our Open House blog series, the millennial generation is taking over when it comes to buying a home. Reduced rates and the additional inventory will significantly lower the financial threshold for first time home buyers. The additional choices will ease pressure beyond the sticker price, spilling over to fewer and simpler offer negotiations making it more feasible to purchase their first home.
Houston real estate strikes and outperforms our Sign Boss clients this month, but they are still 'real-ty' good at what they do. We saw that our Sign Boss agents were outperformed earlier on in April, but we expect a turnaround in the second half of the year.
Although we see some decreases and not all positive numbers, there is still a continuation of positive trends. The numbers we see in our current data are still better than the pre-COVID data and the housing market is still booming.
As of mid-2023, the housing market presents a dynamic and evolving landscape and the market has shown notable resilience.
So what does this mean for the rest of 2023? Average home prices in 2023 are expected to fall 0.6% compared to 2022.
If you take a look at Investopedia, industry experts anticipate that mortgage rates will decline and that home sales will increase as a result of home prices falling and affordability increasing. They also predicted that June was expected to be the seasonal peak for home prices and the declines are expected to run through the early fall.
What are your thoughts on the market? What else would you like to know? Shoot us your thoughts. We plan on sending out these unique market analysis reports regularly to help our agents better grasp what's been going on and more importantly what to expect.
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