A recent report from Morgan Stanley found that home prices could decline by 7% by 2023. This would be twice as large as the 3.1% drop in the early 1990s and the second steepest decline since the Great Depression. Regardless of the cause, it is a bleak scenario for the housing market.

Will House Prices Go Down in 2023?

The decline in home prices is likely to be modest because inventory remains low. However, higher mortgage rates also keep homebuyers from buying uk property investment. The rapid rise in mortgage rates has spooked many homebuyers. It’s unlikely that prices will drop reasonably in the next year.

Will House Prices Go Down in 2023?

Despite this, it’s essential to remember that prices will likely fall in areas with “boom and bust” cycles. These areas have traditionally attracted more investor capital and institutional funds. Other markets that have benefited from unusual pandemic demand include Boise, Idaho, and the Mountain states.

Homebuyers should also improve their finances and increase their FICO score. This could help them qualify for lower mortgage interest rates in the future. It’s a good idea to pay off existing debts before buying a house, as this will help improve your credit score. In addition, it’s better to avoid opening new lines of credit since opening more lines of credit will lower your FICO score.

The Millennial generation will continue driving the housing market for years. They are the largest generation in history and are more educated than any other generation. They are also the fastest-growing segment of homebuyers. Millennials reached a record low in homeownership in 2018, but now they’re not holding back on their goal of owning a home.