2023 Mortgage Market Examining Beyond the Hype & Hysteria

In the 2023 landscape, there has been much speculation about the state of the real estate market. With all of the changes that have taken place in recent years, it's not surprising that there are questions about what to expect in the coming months. In this blog, we will explore what the market is telling us about the future and what you can expect as a homebuyer or homeowner.

First, it is important to understand that the market is not experiencing a crash. Instead, it is leveling out after a significant increase in the past few years. While there may be a moderate drop in some markets, this is not a cause for alarm. In many markets, the average increase is still expected to be between 3 and 5 percent, and some areas are even seeing steady growth.

Additionally, there is a lack of inventory in many markets, which is contributing to the steady growth. For example, the Denver market has very little inventory, with only 1500 homes available for millions of residents. This is a strong indicator that the market will not crash, as there is still a high demand for homes.

The government and agencies like Fannie Mae and Freddie Mac are also playing a role in stimulating the real estate market. They are focusing on helping first-time homebuyers and people with lower to moderate incomes and credit scores get into homes. To this end, they are changing the rules and offering various programs to make it easier for these demographics to purchase homes.

For those who have been sitting out the market for the past two years, now may be their time. A buyer's market is defined as six months or more of inventory, and we have not seen a true buyer's market since 2012. To reach six months of inventory, we would need 2 million listings nationwide, which we have not seen since 2015. Despite this, there is still a high demand for homes, and interest rates remain low.

The real estate market in 2023 is expected to be stable, with a focus on helping first-time homebuyers and those with lower to moderate incomes and credit scores. While there may be a moderate drop in some markets, this is not a cause for alarm, and the market is expected to continue to grow steadily in the coming months. As always, it is important to do your research and speak with a real estate professional to understand what to expect in your area.