Is there a housing bubble? Will mortgage rates drop? Will housing affordability issues improve for hopeful buyers? Windermere Chief Economist Matthew Gardner gives his thoughts on these questions and more in his Top 10 Predictions for 2023.
There isn’t any housing bubble
Mortgage charges rose steeply in 2022 which, when coupled with the large run-up in residence costs, has some suggesting that we’re recreating the housing bubble of 2007. However, that might not be farther from reality.
Over a previous couple of years, residence costs obtained forward of themselves resulting from an ideal storm of large pandemic-induced demand and traditionally low mortgage charges. Whereas I count on year-over-year value declines in 2023, I don’t consider there will probably be a systemic drop in residence values.
Moreover, as financing prices begin to pull again in 2023, I count on that may permit costs to renew their long-term common tempo of development.