MINT HILL, NC – Are you worried about entering the housing market as a buyer? Do you want to make sure you sell your home at the right time?

Understanding the local real estate market and what Fannie Mae believes the home prices will look like in 2023 is important. You want to make sure you make the right decision. Buying or selling a home is a huge financial transaction.

With around 70% of homes for sale going into a bidding war during January of 2022, it’s important to figure out what you should do. This rate of bidding wars broke the record and there hasn’t been any relief for buyers in 2022, so far.

Many in the real estate industry thought 2022 would bring a slowdown to home price growth. However, that hasn’t been seen, so far. Let’s look at what Fannie Mae believes is coming for home prices in the near future.

Fannie Mae’s Prediction for 2023

Fannie Mae recently shifted their 2022 forecast up. They have predicted the median existing home price would go up by nearly 8% in 2022. However, now, they believe it will go from about $355K to $384K, which represents an 11.2% increase compared to 2021.

While a rate of 11.2% would mark a deceleration compared to the current growth rate, it wouldn’t provide much of any relief for buyers. This rate would also be nearly triple the average rate of raises in corporate America.

Going into 2023, Fannie Mae does believe the market will cool off. They have predicted that by the end of 2023, home prices will only be increasing by about 4.2%.

Zillow Also Made Adjustments

Fannie Mae isn’t the only one making changes to its predictions. Zillow had forecasted the home price growth would be about 11% compared to last year. However, they revised that rate to 17.3%, which would only be about 1.5% less than the time between December 2020 and December 2021.

With these changes, the market may look quite a bit different for the rest of 2022 than originally thought. As mortgage rates go up, it could also make it harder for many buyers to enter the market. This could help to slow things down, but both Fannie Mae and Zillow don’t see much of a slowdown in home prices until 2023.

I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me.  I will help you make the right move! Anna Granger 704-650-5707 | annagrangerhomes@gmail.com | www.1stchoicepropertiesinc.com