Now that we have entered the “spring market,” it’s an opportune time to discuss market forecasts and anticipate what’s in store for those who are considering buying or selling a property this year.

Here are what experts are expecting in the housing market for 2023:

1. Home prices will rise, but slower than we have seen in the past 2 years. Experts predict an average increase of 5.4% nationwide.

2. Mortgage rates will stabilize between 6.5-7%

3. Thanks to the jump in interest rates, buyers have less buying power in 2023. The typical mortgage payment will be 28% higher, pricing some buyers out of the market.

4. Inventory will trail pre-pandemic levels but will be up 22.8% from 2022, giving buyers more options to choose from and less competition.