U.S. Housing Prices 2023 Expected to Increase by 6.3% Over 12 Months

Real estate economists have predicted that the U.S. housing prices 2023 will increase by 6.3% over the coming 12 months. In addition, a forecast model predicted that 48 housing markets will see an increase of 7%.

Between the months of February and June, real estate company Zillow has recorded that the U.S. housing prices 2023 have increased by 4.8%. The company’s latest prediction revealed that the U.S. housing prices 2023 will increase by 6.3% which is more than the average of 5.5% annual increase since 1975.

In addition, an article in GMToday.com states that the company’s forecast model also predicted that 48 of the country’s 200 biggest housing markets will see an increase of 7% or more in the next 12 months. Nonetheless, economists from Zillow believe that the shortage of homes for sale due to homeowners refusing to give up their very low mortgage rates has been one of the reasons for the increase in the U.S. housing prices 2023.

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Housing Prices 2023 Increase in Markets

According to Lambert, the reason why Zillow is confident with the 48 housing markets is because they are located all over the U.S. Reportedly, there are housing markets in the West such as in the city of San Luis Obispo in California.

In the South, there are housing markets in the city of Baton Rouge in Louisiana, while in Midwest the housing markets are in the city of Springfield in Missouri. Furthermore, in the Northeast, there are housing markets in the city of New Haven in Connecticut.

Further reports say most of these housing markets have less declining affordability and tight inventory levels. While the affordability of housing prices 2023 has worsened across the U.S., the 48 housing markets did not get extended beyond local fundamentals such as Zoom towns like Austin and Boise in Idaho.

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