Housing Market Shows First Signs of Normalizing in 2023—Here’s What That Means for Homebuyers

For the past two years, the U.S. housing market has been largely characterized by frenzied home sales, soaring costs, and an ever-widening supply deficit, but according to MarketWatch, conditions seem to be improving. Active inventory of homes for sale was up 55% in December 2022, and of those active listings, 14% saw their prices slashed at the end of the year.

Though mortgage rates remain above 6% and home prices are still historically high nationwide, slower listing price growth and increasing inventory could give prospective buyers more bargaining power in the year ahead, creating much-needed balance in the for-sale market.

Raleigh, N.C. saw the biggest increase in active inventory, up 226.2% from last December. Nashville, Tenn. also experienced a 226% increase in inventory, followed by Austin, Texas, which had a 187% increase in listings.

To be clear, however, most of the biggest 50 cities did not see a year-over-year increase in new listings. Homeowners are reluctant to sell in an environment where they may be compelled to cut prices, or offer concessions.

PB Topical Ref