What Will 2023 Bring for Homeowners and Potential Homebuyers?
Summary from AllSides News Team
Amid low inventory and rising interest rates, some are painting a bleak picture for potential homebuyers in 2023. But some surveys suggest buyers remain optimistic.
Skeptical Outlook: "New listings are down more than 20% from a year ago as homeowners hang onto low mortgage rates," tweeted Redfin chief economist Daryl Fairweather on May 1. "Homeowners are quiet quitting the housing market." One Insider (Lean Left bias) reporter said subsequently, "would-be homebuyers looking to upgrade their homes have been sidelined."
More Optimistic Outlook: "Amid cooling inflation and rising housing costs, many first-time homebuyers feel more certain about their financial situations," according to a recent TD Bank study. Of first-time buyers in the survey, 39% said now is a good time to buy, and 48% said they've starting saving for a down payment. Meanwhile, 64% are concerned about affording a home amid rising interest rates, and 38% of renters have considered delaying their purchase and continuing to rent in 2023.
For Context: Mortgage rates have fallen in recent weeks despite federal interest rate hikes. Housing inventory remains tight, however, and new mortgage rules sparked controversy over whether they'll benefit low-credit buyers while hurting higher-credit individuals.
How the Media Covered It: Left- and center-rated sources focused more on Fairweather's comments. Some right-rated sources, like Fox Business (Lean Right bias), covered inventory issues while also highlighting the TD survey. AllSides didn't find any coverage of the survey from the left or center.
Featured Coverage of this Story
From the Center‘Quiet quitting’ the U.S. housing market: One group of sellers has disappeared
The housing market’s all-important spring season has arrived, but there aren’t many homes going up for sale.
According to Realtor.com (see chart below), only 392,016 U.S. homes were listed for sale in April 2023. That’s below the 497,844 listed in April 2022—a period that was infamous for its tight supply—and far below the 552,082 listed in April 2019.
Redfin chief economist Daryl Fairweather might have summed up the phenomenon the best when she tweeted last week: “Homeowners are quiet quitting the housing market.”
Fairweather is being a little tongue-in-cheek as she invokes quiet...
From the LeftQuiet quitting hits the housing market: Tight inventory and still-high mortgage rates keep would-be buyers sidelined
The housing market seems to be taking a page from the labor market's playbook right now.
Daryl Fairweather, Redfin's chief economist took to Twitter last week to describe the sluggish sector:
"Homeowners are quiet quitting the housing market."
The phrase has become somewhat hackneyed over the last several months — it describes employees doing minimal possible work to skate by in their jobs — but applying it to Americans looking for homes is a new twist.
Fairweather made her comment in response to new home listings being down more than 20% from a year ago...
From the RightMany Americans still optimistic about homebuying despite tough economic backdrop: TD Bank
Many Americans have shrugged off rising costs and interest rates and said that 2023 is the year to buy a home, according to a recent TD Bank survey.
Among respondents looking to purchase a home for the first time in 2023, 39% said now is a good time to buy and 48% have already begun saving for their down payment.
However, the optimism comes mixed with some reservations, with 69% of respondents concerned over where the economy is headed and 64% worried about how rising mortgage rates may impact affordability, the survey...