According to recent data from CoreLogic, the possibility of an economic crash in the housing market in 2023 seems unlikely, at least for now. In fact, house prices across the country have shown a steady rise, including distressed sales, which increased by 4.4 percent in February 2023 compared to the same month in the previous year. While anything is possible in terms of future economic developments, here are some current factors that suggest the housing bubble may not pop in 2023:
Low mortgage rates: As of the first quarter of 2023, mortgage rates remain quite low. This means that more people may be able to afford to buy homes, even if prices continue to rise.
Increase in homebuilding: Despite a slow start due to the pandemic, homebuilding has been on the rise since 2021. This increased supply of homes could help to stabilize prices.
Strong job market: Unemployment rates have been dropping, and the job market is showing signs of strength. This could lead to increased demand for housing as more people are able to secure steady income.
Homeowners’ equity: Many homeowners have seen an increase in their equity as home values have risen. This could help to prevent a wave of distressed sales if the market were to slow down.
Government intervention: The government has shown a willingness to intervene to prevent economic crashes in the past. It’s possible that policies could be put in place to stabilize the housing market if it shows signs of instability in the future.
Overall, while it’s impossible to predict the future, there are several positive signs that suggest the housing bubble may not pop in 2023. However, it’s important to keep an eye on economic developments and adjust strategies accordingly.