Housing Market 2023: What Can We Expect for the Second Half of This Year?
According to Yahoo! Finance, the road to homeownership has been difficult for many Americans in the last few months. Sticky inflation, soaring rates, which in turn are translating into ballooning mortgage rates, and short supply have left many would-be homebuyers on the sidelines.
Yet, several experts agree that the second half of the year might be a bit easier for homebuyers, as inflation is cooling down and the Federal Reserve is expected to put an end to its hawkish rate campaign. However, some other factors might still put pressure on the housing market, such as short supply and continued increasing prices.
“The housing market is like a car being driven by multiple factors. High mortgage rates and elevated home prices are the gas pedal, pushing the market forward,” said James Allen CPA, CFP, founder of Billpin.com. “But the brakes are being applied by constrained housing inventory and fears of ongoing inflation. The steering wheel is in the hands of the Federal Reserve, guiding the direction with interest rate decisions. And in the backseat, you have potential homebuyers waiting to see where this ride is going to take them.”
