The jump in interest rates had a clear cooling effect on sales and led to a 23.8% drop in volume.
However, this hasn’t caused much of a drop in prices. There has been significant price appreciation during the past few years.
For 2023, the National Association of Realtors is predicting home values to go up by lessthan 1%. Zillow is predicting values to decline between 1-4%.*
Zillow is also expecting a return to the traditional seasonality of the market. The number of homes for sale goes up in February and stays up through the summer.
But most experts are predicting a year of tight inventory of homes forsale, which will help keep prices from falling much.
Our favorite prediction quote:
"The big surprise for a lot of people might be that the market has a really boring year. It would be a great change of pace. A plain, boring, vanilla year in the housing market will be a wonderful surprise",
-Jeff Tucker Senior Economist, Zillow
2023 will still be a good year for making a move in most circumstances. If you are thinking about buying, selling, investing, or just want to chat about real estate opportunities, give us a call or drop us an email!
at Clark Fork Realty,
*Zillow and National Association of Realtors predictions are
nationwide, not just Missoula.