2023 Housing Market Forecast: What to Expect for Home Buyers and Sellers

As we begin the new year, the housing market is showing signs of promise for those looking to move home in 2023. According to property expert Tim Bannister, Boxing Day saw a record number of people putting their homes up for sale, 46% more than on the same day in 2021. This increase in available properties on the market is a welcome change for home-buyers, who have faced a shortage of properties in recent years, leading to a fast-paced and competitive market.

This year, home-movers can expect more choice and a calmer market, with homes likely to be on the market for longer before finding the right buyer. Tim says, “After such frenetic market conditions over the last few years, this year’s calmer market will better suit measured movers who prefer to take their time to find the right property”.

Despite a calmer housing market, there are still many buyers ready to launch their home search in 2023. According to Rightmove, there was a 20% increase in views of homes for sale on their website from the week of Christmas to the week of Boxing Day. This increase in interest is a positive sign for those looking to sell their homes.

In terms of house prices, we’re forecasting that property prices will fall by an average of 2% in 2023. However, it’s important to note that housing market activity, including house price changes, will differ depending on where you live. This is because there are many smaller, local-level markets at play, with trends varying depending on the types of property on the market, the location’s desirability, and what buyers in that area can afford.

Finding the right estate agent will be key in navigating these local markets. Choosing an agent you trust and who has recently sold properties like yours in your area will be important in finding the right buyer for your home.

In terms of getting a mortgage, there has been more stability in the financial markets in the past few months, leading to an increase in the number of mortgage deals available. Many of the deals currently offered by lenders have already factored in the Bank of England’s recent interest rate rises, including the December rise to 3.5%. Lenders have also tightened their affordability criteria to ensure that people are still able to afford their mortgages in case of an increase in payments.

Bottom Line

In summary, the housing market in 2023 is expected to have more choice for home-buyers, with an increase in properties being put up for sale. This may lead to homes being on the market for longer before finding the right buyer. However, there are still many buyers ready to launch their home search in 2023, with a 20% increase in views of homes for sale on Rightmove after Christmas. Visit Reliance Digital for more details.