Despite initial signs of falling prices and reduced activity, the housing market has proven resilient this year, and the predicted recession has not materialized.
The Current State of The Housing Market
Early this year, signs of a housing market recession, noted by Goldman Sachs, contrasted with the success of real estate crowdfunding.
Rising Interest Rates
Freddie Mac reported the 30-year fixed mortgage rate averaged 6.82% between June and July 2023, impacting both buyers and sellers.
Low Housing Inventory
Historically low housing inventory in 2023, with a projected shortage of nearly 4 million houses, keeps home prices high due to supply and demand imbalances.
The Affordable Housing Crisis
The current housing prices, mortgage rates, and limited supply of homes make it very difficult for the average American to buy homes.
A Housing Market Recession Is Unlikely
Don't anticipate a housing market recession or substantial price drop soon, but a second downturn in property prices is a possibility.