Over the past few years, housing market trends have grown increasingly uncertain, making it difficult to predict what will happen in the near future. In order to better understand the signs, Altos Research has released a comprehensive report detailing their housing market predictions for 2023.
Altos’s report uses numerous detailed metrics to analyze housing data, including tracking trends in listing prices, days spent on the market, and home sales. They emphasize that since 2020 home sales have generally been higher than expected, although the most recent data still shows a COVID-19 induced slowdown in transactions, particularly in the luxury markets. In contrast, their predictions for the second half of 2021 and on into 2023 are based on sustained activity and a long-term recovery of the housing market.
According to their research, Altos predicts that home prices will increase modestly going into 2023, with no more than a 5% compound annual increase over the next two years. They attribute this forecast to the lagged effects of the current housing shortage, which they don’t expect to have a major influence on prices until the end of 2021. Additionally, they note that the trend of house listings declining faster than sales could push prices upward in many parts of the country.
Altos’s report also suggests that more robust home sales activity should be expected in 2023, with no significant dips in the market over the upcoming two years. This is due to their assumptions that the US economy will recover and as a result, demand for housing will remain high. Overall, Altos’s predictions point to a highly positive outlook for the US housing market, providing further hope for a strong and stable recovery from the COVID-19 pandemic.
You can read this full article at: https://www.housingwire.com/articles/altos-research-housing-market-predictions-for-2023/(subscription required)
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