Experts predict major slowdown for housing market in 2023

Monique John Image
Tuesday, January 3, 2023
Experts predict major slowdown for housing market in 2023
Already in central North Carolina, homes for sale are staying on the market for longer than in previous months.

FAYETTEVILLE, N.C. (WTVD) -- Real estate experts are anticipating a major slowdown in the housing market in 2023.

Experts are predicting stagnating home prices and fewer sales, saying they are a result of the surge of buyers and sky-high high mortgage rates during the COVID-19 pandemic.

Lisa Pursley of Fathom Realty NC said she can see the market sluggishly moving along already.

"We were seeing homes move within a few short days, and now we're seeing several weeks," Pursley said.

She noted that in Fayetteville alone, houses costing about $300,000 are spending almost a month on the market as of December compared to about 12 days early last year. In Raleigh and Durham, houses are spending a median of almost 40 days on the market; that's six more days year over year in both cities according to Redfin.

Inventory is down as well, with about 40% drops in Raleigh and Durham. Fayetteville's inventory is down by 60%. Median sale prices have also been rising by almost 10% in the Durham and Raleigh areas.

Pursley said that because it's such a tough and competitive market, people aren't buying as quickly as they used to.

"I'm seeing buyers are a little more particular about what they're buying because they're going to be paying a lot more for their purchase price," she said.

Pursley said buyers should take advantage of the fact that they now have more time to think through their decision and maintain close relationships with their lenders. Pursley had advice for home sellers, too:

"Be patient with the change in the market, and know that you will get your home sold," she said. "Just know that there may be a few more extra days on the market than maybe your friends who were selling, or your neighbors who were selling in 2020, 2021 and even '22."