Experts predict slower market and more flexibility for buyers in 2023

According to realtors across the nation, the housing market is predicted to shift towards a more buyer-friendly environment in 2023. This is a significant change from the fast-paced and costly market during the pandemic. The current slowdown in the market is attributed to mortgage rates remaining around 6%. Experts surveyed by Axios anticipate that sellers will have to put in more effort to seal the deal as buyers are not inclined to overbid on properties that are less than perfect.

Buyers will have more options and negotiation power

As they will have the ability to ask for sellers to pay closing costs, request price decreases, and property repairs. Jeff Clay, owner of JClay Realty in Charlotte, said that the market is moving with interest rates. If the rates remain high, there will be low overall activity, low supply, and demand that will probably stay a bit muted. Eileen Bermingham with Corcoran Icon Properties in San Francisco predicts fewer instances of overbidding and multiple offers. Additionally, buyers will be split into two groups – those who wait for prices to fall, or those who take advantage of good opportunities.

In Texas,

drastic home price drops are not expected, according to Adam Perdue, an economist with the Texas Real Estate Research Center at Texas A&M University. He stated that over the next few years, there will be a flattening in the rate of price increases on a year-over-year basis. However, some cities like Miami may continue to see appreciation in 2023. Fernando Arencibia Jr., CEO of Arenci Properties Realty, said that South Florida real estate is unique from other U.S markets as it continues to see high in-migration domestically and internationally. If mortgage rates do increase later this year, the number of inbound movers and cash buyers should be enough to shield South Florida from falling home prices. In summary, while mortgage rates make borrowing more expensive, buying conditions will be easier and price growth will moderate in 2023.