2023 Real Estate Predictions
Martha’s Vineyard Market Update
The 2022 housing market was defined by two key things: inflation and rapidly rising mortgage rates. And in many ways, it’s put the market into a reset position.
As the Federal Reserve made moves in 2022 to try to lower inflation, mortgage rates more than doubled – something that’s never happened before in a calendar year. This had a cascading impact on buyer activity, the balance between supply and demand, and ultimately home prices. And as all those things changed, some buyers and sellers put their plans on hold and decided to wait until the market felt a bit more predictable.
what does that mean for THIS year and specifically on Martha's Vineyard?
Moving forward, experts agree it’s still going to be all about inflation. If inflation is high, mortgage rates will be as well. But if inflation continues to fall, mortgage rates will likely respond. While there may be early signs inflation is easing as we rounded out 2022, we’re not out of the woods just yet. Inflation is still something to watch in 2023.
Mortgage Rate Forcast for 2023
Right now, experts are factoring all of this into their mortgage rate forecasts for 2023. And if we average those forecasts together, experts say we can expect rates to stabilize a bit more this year. Whether that’s between 5.5% and 6.5%, it’s hard for experts to say exactly where they’ll land. But based on the average of their projections, a more predictable rate is likely ahead.
The 2023 housing market on Martha’s Vineyard and elsewhere is going to be defined by mortgage rates, and rates will be determined by what happens with inflation. The best way to keep a pulse on what experts are projecting for 2023 is to lean on a trusted real estate advisor. Let me guide you!
📲 Maranda Post, Realtor
The O’Hanlon Group
Compass Martha’s Vineyard