Phoenix real estate experts offer their predictions for 2023

In a market like we’ve seen over the last year, who would dare predict what lies ahead in 2023? While most of us ride the economic wave with all of its twists and turns, it’s the industry professionals in leadership positions who have to anticipate what’s next, when that change will take place and how best to adapt and thrive.

That’s why we’ve drawn from the expertise of some of the top minds in the market to hear how they’re preparing for the next 12 months. The big question on everyone’s mind is whether the wild fluctuations in interest rates will begin to even out, but what else is keeping these executives up at night?

In our annual questionnaire, we hear from managing brokers, mortgage lenders, developers and more to get their prognostications on everything from what’s hot in the market to how prices, inventory and myriad other factors shape their vision of the future.

Real estate industry predictions for 2023:

What do you expect for the overall housing market in 2023?

Liz Brooks: While higher interest rates and a fear of economic uncertainty will continue to produce significant market headwinds, there are still meaningful demand drivers and supply constraints that will lead to deal activity. Millennials have surpassed baby boomers as the nation’s largest living adult generation, and they are entering their prime spending years, getting married and starting families. As rental rates have climbed steadily for years, many millennials are now preparing to purchase homes. And as even more existing homeowners stay put, unwilling to give up their ultra-low mortgage rates, there are fewer homes for sale; supply is likely to remain constrained for the foreseeable future.

Our job as real estate professionals is to reinforce to buyers the financial and emotional benefits of owning a home. This requires us to sharpen our knowledge and skills to find creative solutions to help our clients achieve their homeownership goals. Ultimately, our role is to help sellers and buyers achieve their goals during this challenging time.

We need to understand financing options as well as our mortgage partners do, because we are going to see a return of personalizing mortgage programs to each buyer’s situation. For instance, first-time buyers tend to stay in their homes fewer years than move-up buyers. Therefore, it may not make sense for them to pay a premium for a 30-year fixed-rate mortgage when a 5- or 7-year ARM will save them thousands of dollars each year.

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