MarketWatch | Quentin Fottrell
Home sales are slowing as interest rates rise, and prices are also cooling as buyers are put off by interest rates hovering around 7%, double what they were this time last year. But Realtor.com’s 2023 housing-market forecast is predicting that affordability will remain an issue in 2023.
It said the rise in home prices will moderate to a single-digit yearly pace (5.4%) for the first time since 2020. (Home prices rose 8.6% in the third quarter and 14.2% in the second quarter, according to the National Association of Realtors.)
The typical monthly mortgage payment will reach $2,430 in 2023, 28% higher than this year, which will likely force many would-be home buyers out of the property market and ultimately force them to keep renting, the report said.
Read full article: Gloomy prediction for home buyers: Prices will continue to rise in 2023, despite a cooling housing market