If you are considering buying or selling a house in the U.S. now, then you are not the only one who is thinking about whether it is the right time or not. The housing market witnesses several extremes and unusual trends often. In the last few years, things have been quite weird. Hence, it becomes important to peep into the housing market and take the latest update before plunging into something.

Before buying or selling a house in the American market, it is important to study the housing market predictions. You can speak to the real estate pros to make the best decision, study the forecast data, and more to get some idea about the housing market. However, no one can be 100% sure about anything. Still, you must check with the experts and make your guesses.

Housing Market Prices and Sales

The year 2022 is not witnessing what 2021 saw. There are no more situations when the houses get multiple offers and sell for more than the asking price within a few days of hitting the market. But saying that U.S. real estate market has gone too low is also not right.

As per the data, the average price of a home in America was $701,989 in September 2022. This price was for the existing homes, new buildings, single-family homes, and apartments as well as townhomes. The median price of the home registered an annual increase of 14%. You must know that the median implies that nearly half of the homes were sold for more than that price and the remaining half were sold for a lesser price. It is better to check the median price rather than consider the average price of the home as a group of extremely pricey homes can push up the average and the home start looking more expensive than they were.

Housing Recession

Predicting whether the recession is looming or not will need us to understand what exactly a housing market recession is. It means that the home sales number is lowering for the past many months such as six consecutive months or more. So, one group of experts can say that we are in some kind of recession but the other group is more confident as the home prices are not depleting like in a recession.

It is not wrong that until August 2022, there was a depleting home sales number. As per Fannie Mae, home sales are going to drop 16.2% when the year 2022 ends. But another aspect that the home price growth is still happening compared to the last year, cannot be ignored.

Another important aspect to consider was that 2021 was a crazy year that witnessed a record number of sales. This year, what we are seeing is the normal home sales volume. It seems like things are getting back to normal, like how it was in the pre-pandemic era. So, rather than the recession, it is more like a housing market correction.

Lastly, the market needs to worry when declining home sales also mean too much availability of houses for sale and low buyer demand. This will lower home values and disturb the whole economy.

Market prediction

Now, if you are thinking about whether home prices are going to lower in 2022, then it doesn’t look like it. As per Freddie Mac predictions, home prices are all set to grow though at a low rate, which will be somewhere around 4% in 2023. They also confirm that home prices are certainly not dropping anytime in the near future.

It is also vital to know that the factors that may lower house prices are only supply and demand. In case there is a greater number of homes for sale, then the buyers need not compete and make an easy selection of homes. The past has seen a supply shortage for a very long time, and even if there are more homes for sale now, it is just going to level up the market and not cause any downward trend.

Talking about the sinking buyer demand, there could be many factors related to it. If there is a rise in federal interest rates, it can lead to an increase in mortgage lenders‘ rates. The buyers may hold themselves and avoid paying higher rates. During the pandemic, buyers had to get away from their plans of buying a new home, so the buyer demand is still higher today. Hence, it is expected that the prices will continue to rise.

If you are considering selling a house, then be informed that the average house price in 2022 was way higher than what it was previously, in the last many years. So, there are high chances of you making good money. If you are waiting thinking that selling your home later will bring you a double value, then that is a lot of hope which may not be met. But if you are hunting for a house to buy, then the steady and lowering price-growth rate is the best now.

As said mentioned earlier, it cannot be predicted for sure how the market will behave and what will happen to home prices. Ensure to keep saving for the down payment if you are on a house-hunting spree.

What is up in 2023?

2022 is going to be over soon. Now, people are predicting the housing market in 2023. Some are expecting that the housing market will be down in the coming years but the National Association of REALTORS holds a different idea. As per them, the number of home sales may not witness any increase or slow down little, but the home prices will have a nominal growth.

The interest rates impact the cost of a home immensely. In 2021, the interest rates were extremely low. Federal Reserve has increased the benchmark interest rate to curb inflation. Though the body doesn’t set mortgage rates, its actions have a huge impact on the borrower’s interest rates. An increase in Fed rates along with inflation increases the mortgage rates, dropping the buying power.

Some people are unable to meet their mortgage payments and face foreclosure. Now, if you are thinking about how to stop foreclosure at last the minute, then here are your ways:

• File for bankruptcy and remain in the house without paying.
• Negotiate for a modification in the loan
• Consider a deed in lieu of foreclosure.
• In case the lender uses a nonjudicial foreclosure, you can file a lawsuit.

And finally, sell your house quickly.