By Logan Mohtashami | HousingWire
The 2022 housing market was savagely unhealthy, with all-time lows in inventory leading to massive bidding wars and price spikes until the Fed put a screeching halt to all of it with rate hikes that resulted in the most significant one-year spike in mortgage rate history. Housing went into a recession in June and mortgage volume fell off a cliff. So where does all that drama leave us for 2023? Buckle up as we look at each factor individually.
Home prices
My 2022 price forecast:Last year, my price forecast anticipated a noticeable deceleration in price growth, even with inventory levels at all-time lows and mortgage rates still below 4% at the start of the year.I wrote then: “I am looking for total home-price growth to be between 5.2% and 6.7% for 2022. This would be a meaningful cool down in price growth but would still be a third year straight of too much price growth for my taste.”
