2023 Housing Forecasts
Nationally, home prices are showing some resiliency, as prices are starting to climb and price reductions are going down. It's too soon to tell what 2023 has in store as Realtor.com reported that 2022 ended with listings up 55%, homes sold faster as compared to 2019 pre-pandemic levels and prices grew in the single digits. Going forward the consensus is mixed, but overall lower inventory levels and lower buyer participation is expected. Inflation is coming under control as the Consumer Price Index(CPI) fell to 6.5% in December. Mortgage rates have been coming down and are expected to settle in the 5's in the next few months, which would be a big positive for home sales.
Locally, definitely seeing more price reductions, inventory is down as new listings slowed considerably. Having said that, the last week has seen an uptick in inventory so that may be a sign that we are starting the Spring selling season, we shall have to wait and see what the next few weeks bring in order to weigh in on overall activity. The chart below shows home prices are all over the place, but, definitely reflecting a slow down.
Below are some good reads:
5 Trends That Will Shape Luxury Real Estate
The Non-Aesthetic Home Trend
Looking Back on 2022-Key Takeaways
NAR Forecasts Stable Prices for 2023
New Tax Brackets for 2023
Single family home prices(median) for October 2022-December 2022:
| Glendale | + 8.0% |
| Burbank | - 2.2% |
| Toluca Lake* | + 13.8% |
| Pasadena | - 5.8% |
| Studio City | - 1.2% |
| Hollywood Hills | + 12.4% |
| Valley Village | + 3.1% |
| Sherman Oaks | + 6.3% |
| Woodland Hills | - 3.6% |
*Please note that this area had few sales so percentages
are somewhat misleading
Weekly national mortgage rates for loans under $400,000, top credit scores:
| 30 yr. fixed rate | 6.07 | ||
| 15 yr. fixed rate | 5.68 | ||
| 5 yr. adjustable rate | 5.49 |
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