We’re two months into the new year, and even while we’ve been reporting surprisingly resilient home buying activity so far this year, it’s not nearly enough demand to change our view that home prices will be flat to slightly down for the year nationally. As the pricing data for 2023 becomes more mature, we can now start to see how quickly last year’s prices will catch up with this year’s.
Inventory is falling still, so the supply side of the supply/demand equation helps put a floor on prices. There are just so few homes for sale that this market will likely remain tight all year. Rising mortgage rates don’t appear to be adding much to inventory, but they are keeping prices lower. This is an affordability issue.
Check out this week’s Altos update for all the latest on pricing, inventory, and more.
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