According to Realtor.com’s housing projection, affordability will continue to be a problem in 2023, especially for first-time buyers. Because purchasers are turned off by loan rates that are hovering around 7%, which is double what they were at this time last year, home sales are slowing as interest rates climb, and prices are also dropping.
For the first time since 2020, the increase in property prices will slow to a single-digit annual pace (5.4%), according to the report. According to the National Association of Realtors, home prices increased by 8.6% in the third quarter and by 14.2% in the previous quarter.
According to the estimate, the average monthly mortgage payment will rise to $2,430 in 2023, a 28% increase from this year, driving many prospective homeowners out of the housing market and ultimately forcing them to continue renting.
