Podcast

Ep. 155 – A Crash or Correction? Let’s Look at 2023 Housing Market Predictions

Ep. 155 – A Crash or Correction? Let’s Look at 2023 Housing Market Predictions

Ep. 155 – A Crash or Correction? Let’s Look at 2023 Housing Market Predictions

Headlines are saying that this will be the year of the housing market crash. But are they saying that because it’s true, or just because they want you to read their content?

In the first part of his multi-episode series, David Sidoni analyzes data and reports from industry experts to give you the real scoop on what 2023 holds for home buyers. Taking a look at rent, mortgage rates, home sales, prices and more, David bypasses the pessimism of the newspapers to tell you the truth: this year, the market will be getting back to normal instead of spiraling toward disaster.

Here are the biggest takeaways from today’s discussion:

  • Why housing market will likely return to normal in 2023
  • What the experts mean when they say it’ll be a “slow year”
  • How first-time home buyers should navigate the slowing market
  • How skyrocketing rent prices will influence the housing market

Episode Highlights:

[01:48] Here’s What The Experts Are Saying

To help form his predictions for 2023, David tuned in on what industry experts are forecasting. According to his research, economists and notable real estate publications are sharing a relatively cynical perspective on the housing market in the upcoming year. Some even report that there’s a “real estate reckoning at hand.” While that sounds scary — and it could be for those who are working in the industry — it’s actually really good news for you as a home buyer.

And, while some sources are projecting doom and gloom for 2023, don’t fall prey to that sort of thinking. Instead, it’s most likely that the housing market will simply return to normal. After a red-hot market the past two years, real estate has gotten over the peak and it is settling back into normalcy.

[10:00] How the Patterns in 2022 Set Up the 2023 Market

David discusses how some experts’ predictions show that it won’t be a buyer’s market, but instead there will be a better balance between buyers and sellers: AKA a normal market. Home prices and mortgage rates peaked in 2022, meaning that home buyers need to reset their expectations in 2023 as home sales slow down… Some even go so far as to say it will be nobody’s market.

Despite all the uncertainty that will come this year, if you’re ready to buy a house, buy a house! Learning how to navigate this kind of market can turn this potentially sticky situation into an amazing opportunity.

A crash is not going to be happening [in 2023]. This is a correction, not a crash.
A crash is not going to be happening [in 2023]. This is a correction, not a crash.

[20:40] Rent Is Going Through the Roof

According to an article from Bloomberg, 1.4 million renters reported a $1200 increase in their bill over the past year. Everyone (and David means everyone) is experiencing a staggering increase in rent from all over the country. Some headlines are reporting that rent is decreasing, but don’t be fooled. They’ve already doubled in the past 5 years, so it’s a stretch to pay the bill even if your rent cost is starting to plateau. As vacancy rates hit an all-time low, landlords will be afraid to keep raising rent in case fewer and fewer people decide to rent over buying a house. So, rent will see a subtle decrease, but nothing to shake a stick at.

Economists say it will take one of two things to tame the insane rent costs:

  1. The government raising rates to force a recession, OR
  2. An increase in housing supply that can sufficiently meet the demand

Unfortunately, there is no way that housing supply will meet demand, so that leaves the market with one option. Believe it or not, this is actually a great time for renters to consider buying a home.

Resources Mentioned:

https://www.usatoday.com/story/money/personalfinance/real-estate/2022/12/15/housing-market-six-experts-2023-real-estate-industry/10881757002/

https://www.redfin.com/news/housing-market-predictions-2023/

https://www.bankrate.com/real-estate/housing-market-predictions-2023/

https://www.newsweek.com/will-house-prices-drop-2023-real-estate-experts-predictions-1761338

https://www.marketwatch.com/story/house-prices-will-fall-in-2023-but-affordability-will-be-at-its-worst-since-1985-says-capital-economics-11668530061

https://www.yahoo.com/now/heres-where-morgan-stanley-bets-154429100.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAFp7dP8NWhL4dPQWzKeswluQ4MrL1epgKJ5Ef8q6GN42HYjuJWH21lWTB6aSZYWkjHYvbdO-SWmkA3Za5NmwrXtWKqlTByw0le8ztimSJ1td6ub1z2MKiUxuYRH4OjZzXqOLuqvMhBn3Mg-U4kgpv-WiCXyQNups25rEJ285cuJH

https://www.realtor.com/news/trends/2023-the-year-of-the-homebuyer-our-bold-predictions-on-home-prices-mortgage-rates-and-more/

https://www.housingwire.com/articles/the-red-hot-housing-market/

https://www.inman.com/2022/12/28/the-2023-housing-market-a-real-estate-reckoning-is-at-hand/?utm_source=dailyheadlines&utm_medium=email&utm_campaign=localnewsletter&utm_content=952861_textlink_1_20221228&message_id=30095174.65871

Get helpful advice delivered to your inbox.

Here More Episodes

You thought that the last episode was the last one in David Sidoni’s 2023 housing market predictions series. PSYCHE. In this BONUS episode, he gives you some insight on how a recession could totally upend all the other predictions we’ve talked about so far.

Here it is at long last: the final installment of David Sidoni’s 2023 housing market projection series. You’ve been waiting for it for a long time and now you don’t have to wait any longer. This episode is about PRICES. FINALLY!

David Sidoni is back for part three in his 2023 housing predictions series. What’s on the menu for this episode? INVENTORY. Jump in and listen to David as he discusses how construction, prices, and supply & demand are all playing a role in this year’s outlook. Expert opinions, hard data, surveys… it’s all there and David leaves no stone unturned.

I hope you are getting your questions answered about this crazy process. I know there’s not a lot of clear information out there on the internet, so that’s why I started this podcast. To demystify the whole thing and get you first timers the help you deserve!  Help me spread the word to other people just like you, dying for answers. Tell your friends, family, and perhaps that random neighbor you REALLY want to move out about How to Buy a Home! A really easy way is to hit the share button and text it to your friends. Go for it, help someone out.  And if you’re not already a regular listener, please subscribe.  If you are a regular and learned something, help me help others – give the show a quick review in Apple Podcasts or wherever you get your podcasts. Let’s change the way the real estate industry treats you first time buyers one buyer at a time – and make sure your favorite people don’t get screwed by going into this HUGE step blind and confused.  Viva la Unicorn Revolution!

Get Expert Real Estate Help & Advice