2023 Key Trends to Watch

• • 62% said they predict there to be somewhat or much fewer home sales in 2023 compared to 2022. But 68.3% said they predict annual U.S. home price growth to decline only modestly or stay about the same as in 2022.

  • 71.5% said they predict inventory to stay at current levels or increase somewhat. 75.8% said they expect the same of national rent levels.

  • 61.6% said they predict average rates to end 2023 between 5% and 6%, down from 2022 highs exceeding 7%.

The market’s balance of power is predicted to shift towards buyers for the first time in years, but first-time buyers are likely to continue to struggle

• • 86.6% said they predict a balanced national housing market or one tilted in buyers’ favor in 2023.

  • 74.6% said they predict the share of first-time buyers – which fell to a record low in 2022 – to stay at low levels or decline further.

  • 80.8% said they predict the share of buyers aged 55-74 – which hit a record high in 2022 – to stay the same or rise next year.

Urban living, condos and shared amenities will all be more popular in 2023

• • A majority of agents agree – As affordability challenges continue, the pandemic fades, cities regain their luster and more companies begin to require employees to return to the office more regularly, condos will experience a resurgence in popularity in 2023.

  • The number of respondents that said urban living would grow in popularity was 44.1% higher than the number that said it would fade.

  • The number of respondents saying shared community amenities – community centers, pools, tennis/pickleball courts, etc. – would grow in popularity was more than triple the number that said those amenities would fade in popularity.

  • 49.1% more respondents said large yards would fade in popularity than said they would be more popular.