NEW YORK, NY / ACCESSWIRE / June 2, 2023 / Manuel Molinos, one of the best and most recognized real estate agents located in the State of Florida, believes that the real estate market, especially housing, will be greatly influenced by more general economic factors this year.

The housing market has experienced remarkable growth in recent years, which is of concern to prospective buyers. Low-interest rates, increased demand for suburban housing due to the pandemic, and limited housing supply have all contributed to skyrocketing prices.

However, the lack of wage increases relative to housing prices has made buying a home increasingly difficult. To overcome these obstacles, experts like Manuel recommend early and steady savings for a larger down payment and investing in low-cost index funds or robo-advisors.

'While some economists remain hopeful, reports point to a potential slowdown in the U.S. housing market, driven by rising mortgage rates, a lack of affordable housing, and the lingering impact of the COVID-19 pandemic,' comments Manuel.

During 2023, the housing market will face several challenges that impact home prices and affordability. Limited housing supply and high mortgage rates pose significant hurdles, especially for first-time buyers. However, due to a shortage of inventory and homeowners staying put after purchasing homes at low-interest rates, price declines are not expected nationally

'The market remains uncertain, with conflicting indicators such as declining home sales and fluctuating mortgage rates leading experts to forecast a slow recovery. Persistently low housing inventory, approximately 46% below historical averages, continues to support rising prices and is unlikely to improve in 2023,' shares Manuel.

Despite the challenges facing the housing market in 2023, there are positive signs in the homebuilding sector. Single-family construction has seen an increase in starts, and there has been an increase in building permit applications.

'While builder confidence remains low, indicating cautious optimism, the increase in demand for new homes can be attributed to lower mortgage rates and the limited availability of existing homes,' explains Manuel.

However, there are certain factors that could hinder the growth of the homebuilding sector in 2023. The Federal Reserve's rate hikes have had an impact on developers' borrowing costs, which could deter them from starting new projects. In addition, homeowners with low fixed-rate mortgages may be hesitant to sell their homes due to the uncertainty surrounding interest rates and home prices.

Overall, the housing market outlook for 2023 presents a mixed picture. Although limited housing supply and high mortgage rates pose affordability issues for buyers, the market is not expected to experience price declines on a national scale.

The homebuilding sector is showing positive signs, but uncertainties surrounding interest rates, home prices, and supply and demand could make builders hesitant to undertake new projects. Manuel stresses the importance of monitoring these trends and advises prospective homebuyers to approach the market with caution.

'It is crucial that homebuyers and industry professionals keep a close eye on these trends and adapt their strategies accordingly. The housing market in 2023 presents both challenges and opportunities, and it is essential to stay informed and make informed decisions.' Manuel states.

Moreover, Manuel cautions prospective homebuyers not to rely solely on forecasts of falling house prices and mortgage rates in 2024 when planning their purchase. He also stresses that while mortgage rates are expected to fall, they are unlikely to reach historic lows.

'Historical data suggests that rates have typically been higher, and any price correction resulting from the housing shortage would likely be short-lived. In fact, lower mortgage rates could increase demand and push prices higher,' comments Manuel.

By following the recommendations of experts like Manuel Molinos, staying informed, and taking proactive steps, you can increase your chances of navigating the market successfully and achieving your homeownership dreams. Take action today and position yourself for a brighter future in the real estate market. Click here.

About Manuel Molinos:

Manuel is an expert real estate agent based in Ocala, Florida.

Contact:

Paula Henderson
561-768-4444
[email protected]

SOURCE: Manuel Molinos