Is the Housing Market Going to Crash in 2023?

Should You Buy or Sell This Year?

 

 

Are you eagerly waiting to know whether the housing market will crash in 2023? Curious about the right time to buy or sell a property this year? Join me, Sharon Colon, your trusted Miami real estate expert, as we delve into the dynamics of the real estate market. In this blog post, we’ll explore the possibilities of a housing market crash, backed by recent data and expert insights. Discover the factors driving the market, the impact of interest rates, and the changing landscape for buyers and sellers.

 

Undoubtedly, the last few years have been a wild ride for real estate.  According to a recent article by GoBankingRates.com, many Americans, especially younger generations, are hoping for a real estate housing market crash in order to purchase their first home. 

 

In fact, the report states that “surveys show that 80% of all Americans, and 86% of Gen Z, want a housing market correction.”

 

The real estate market has experienced a seismic shift after enduring several years of historically low-interest rates. As of April 10, 2023, the national average for a 30-year fixed-rate mortgage skyrocketed to an astonishing 6.28%, catching both buyers and industry experts off guard. This sharp increase in mortgage rates has left many potential homeowners reevaluating their plans and struggling to navigate this newfound territory of higher borrowing costs. But will the interest rates go down in 2023? 

 

Recent data from Redfin shows that in February 2023, the number of homes sold in the country compared to the previous year plummeted by a staggering 21.9%. This unexpected decline has sparked concerns among analysts and economists, raising questions about the factors contributing to this substantial drop in sales activity. On the other hand, the national median sale price was down 1.2% year-over-year. 

 

Although you might think that these factors indicate a market crash, a housing market crash is unlikely in 2023 and there are multiple reasons for that. 

 

Right now, the market is great for sellers, however, it is turning more into a buyers’ market. Now, talking about the local Miami market, the sale prices declined during the last few months but they have now started to increase again. Also, I will be doing a market update video by the end of this month. If you want to know what is happening in the Miami real estate market, hit the bell icon and you will be notified when I upload that video. 

 

Now, we can agree that prices must go down, so a price correction must happen. But will it be at the same dramatic level we saw back in 2008? What do you think? Before I tell you what experts say about this, do let me know in the comments below what you think. 

 

Now, obviously, we cannot be 100% sure about what will happen by the end of this year or next year. And we are already seeing that young people are being forced to delay their plans of purchasing their first homes. And if a housing price correction occurs, more young people will be forced to delay their plans. And the reason is pretty straightforward. High inflation impacts the saving power of these youngsters. 

 

If a housing market price correction happens, then of course we are going to see a decline in the home prices, which is great for buyers. However, it isn’t good news for sellers, right? The continuously increasing interest rates will result in a decline in the number of buyers, however, it will also be an opportunity for buyers who have more cash. And there are two reasons. If a housing price correction occurs, there will be less number of buyers resulting in a drop in the sales. It will eventually force sellers to reduce their asking price. Second, these buyers will face less competition.

 

Now, the real estate market appears to be good for sellers but do you think it is the right time to buy a house? Or should a person wait for interest rates to drop? I believe that market dynamics can vary wildly by markets depending on your location. If we talk on a national level, the competition is declining in the market, which helps buyers with more cash to buy their dream properties easily. 

 

In conclusion, while a housing market crash is unlikely in 2023, there are clear indications of changing market dynamics. If you’re considering buying or selling a property, now is the time to take action. Don’t miss out on the opportunities presented by the evolving market. Contact me today to find out what your home is currently worth in today’s rapidly changing real estate market. Let’s work together to navigate the complexities, seize the right moment, and make the most of your real estate goals.

 

 

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Thank you for reading. I look forward to connecting with you in Miami soon!

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Sharon Colón
Your Favorite Real Estate Agent in Miami
ΓEA⅃ Broker, LLC
786-376-2398
[email protected]
www.sharoncolonre.com