The Housing Market in Houston in December 2022
Sheew!! I am still full from Thanksgiving glad that I got to spend time with loved ones and Christmas is now almost here. What a year to say the least. Thank
you all for joining the first year of newsletters. This time I wanted to do an outlook of what I believe we will see in 2023.
Mortgage Rates
Let’s start with my predictions for mortgage rates. First, we mentioned it before but the Fed did say they wanted to see future numbers in the 4.5% range.
Before this happens they want to see inflation fall a bit. Inflation itself is controlled by many things such as spending and overall sentiment. It is not
controlled by interest rates, rates are reactive to the rate of inflation, not the other way around. I would predict we won’t see the targeted rates until mid-2023. Current FHA rates are down at 6.3% and Conventional loans are around 6.3% as well.
Real Estate Prices
Moving on to home prices. We are starting to see slight price reductions across the board. However, this does not paint the whole picture. If you look at the
speed at which appreciation has driven home values you will see that even if home prices drop we will still be above 2020 levels. I predict prices to come
down a little bit but stay pretty even through 2023.
Waiting on Crash
The last prediction I wanted to leave you with is concerning when the crash is coming and what to do in 2023 (not financial advice). Many of the large
institutions think Wall Street companies are very much still buying Single Family homes. Others are pushing forward with built-to-rent communities. My
suggestion to you would be to buy the best real estate you can afford and hang on to it, because it may only get more difficult to attain in the future.
This is the market update for December 2022! Contact me with any of your real estate questions.
Thank you for reading!
Sincerely, Evan
Check out our partner’s page for more value.