The real estate market continues to operate in an uncertain manner.
With 2023 just around the corner, the economic and financial forecasts for next year have not been long in coming. Zillow, an American technology real estate market company, has released its prediction for the next twelve months in the aforementioned sector.
Knowing how the real estate bubble will evolve will help you consider the possibilities of finding a new home, especially now that prices have shown a slight drop. That being said, will it be cheaper to buy or rent a house in 2023? Let’s take a look…
According to the aforementioned Zillow forecast, renting a house will be the most affordable option for next year.
The company came to this conclusion since rental prices have been decreasing since October, showing the first decrease in the sector in the last two years. These figures support a return to a regular seasonal pattern.
By contrast, mortgage rates have doubled since 2019, although in the past month they have shown an encouraging downward trend. However, the data continue to be higher than the figures recorded before the pandemic.
“Affordability is going to be the biggest factor in housing for 2023, but there’s room for optimism on that front if mortgage rates recede,” said Skylar Olsen, chief economist at Zillow. “Americans finding ways to make payments on a roof over their heads is going to drive the market next year. Where costs are lower, we’ll see healthier sales and inventory levels. If rent is less expensive than a new mortgage, we’ll see increased demand for rentals — something builders and landlords understand.”
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It is no secret that current generations are facing a historically expensive real estate market, which is why specialists in the field suggest that millennials and Generation Z will boost the market by pooling their money to buy a home, resorting to unconventional means to make the dream of having their own roof over their heads possible.
According to data from Zillow, 19 percent of Americans plan to buy a home together with a friend or family member.
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