What Will 2023 Bring for Homeowners and Potential Homebuyers?

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.