Somerset WI's 2023 Housing Market Prediction has the potential to be very similar to the 2022 housing market based on my research of key indicators. In 4th quarter of 2022 the GDP, the CPI index, and the PCE index started trending positively which drove long-term mortgage interest rates to drop approximately 1 full percentage point down to approximately 6.2% to 6.5%.
My research, shows over a rolling 12-month period through November that the Somerset WI housing inventory of new listings, and closed sales were down significantly in 2022, but the median sale price appreciated 23.7%, as did the average sale price appreciation of 23.7%. Inflation is supposed to drop at the end of 2023 significantly and drop down somewhere close to 3.0%. If true, it will have a big impact on mortgage interest rates dropping. Lower mortgage interest rates will cause greater upward pressure on demand, which could significantly increased home sale appreciation. I anticipate the 2023 Somerset WI housing market to remain fairly similar to 2022, but likely with higher home appreciation.
Contact John & Becky Durham at 651-231-2191