Low housing supply could squeeze home prices up 5% in 2023 even though mortgage rates have spiked, Zillow economist says

Markets Insider ^ | 06/13/2023 | George Glover

[millenial4freedom]

Low housing inventory will squeeze prices higher, according to Zillow's chief economist. Skylar Olsen now expects home prices to jump 5% in 2023. Falling supply “is a big, huge, massive part of the picture,” she said. Reduced supply is going to help the housing market overturn much of Wall Street's gloomy forecasts and rack up another year of solid gains, according to Zillow's chief economist. Skylar Olsen said Monday that she's expecting home prices to have climbed 5% year-on-year by the end of 2023, due to dwindling inventory levels. Declining inventory "is a big, huge, massive part of the picture," she told CNBC's "Closing Bell: Overtime". "Only two months ago, before we saw these radically low new listings numbers, we were forecasting something much more like 1.2%, something small," Olsen added. "Now, 5% – that's on the hotter side of steady and stable."

[glorgau]

There’s a whole bunch of people sitting on a 3% mortgage that aren’t going anywhere at current prices and rates.

[ConservativeWarrior]

Sorry you had a tough buying experience. We went through the same process in FL last summer. Our budget increased by 30% as the prices escalated.

Now we’ve decided to move yet again. House goes on the market Monday. Guess we’ll see.

[Chad C. Mulligan]

Unless you are planning of building the house yourself I would look into modular/factory built houses in the greater TN, KY, GA, AL area.

Nope. I've seen one of those kits. They used "engineered wood" i.e. flakeboard for floor joists. Absolute minimum of material that the product cheapening engineers could get past codes.

NOT that modern stick-built is a whole lot better. (Brother-in-law was a developer/builder in Littleton, CO. until he went bankrupt a few years back.)

[Organic Panic]

I know... Bring in million of illegal immigrants to help.......

[woodbutcher1963]

My point is that you can have a custom home built in a factory.
They deliver the home to your site in sections. Then put it all up in a few days with a crane.

[minnesota_bound]

I have read over the years that banks keep many foreclosed homes off the market to keep home prices up as they would lose money if the home prices fell.

[Dr. Sivana]

The illegals do not have any money to purchase these houses.

I am in Phoenix. Landlords buy the houses and rent them out. They get occupied by 8+ tenants (all working age males). I have one nearby in my neighborhood. I know the minimum number by counting vehicles.