home marketinvestmentmiami real estatewall street April 7, 2023

2023 U.S. New-Home Market Predictions?

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The 2023 U.S. New-Home Market Predictions Paint a Positive Outlook

Alex Veiga on Florida Realtors published an article on the subject. Veiga stated that Wall Street Expects a Robust 2023 New-Home Market.”

Here are the highlights of the article:

  • Homebuilder stocks are rising; investors anticipate a boost in builders’ prospects in the spring homebuying season.
  • KB Home, PulteGroup, and Tri Pointe Homes are among the U.S. homebuilders whose stock prices increased by more than 20% this year.
  • The SPDR S&P Homebuilders ETF is up nearly 10%, S&P 500 index is up about 7%.
  • Analysts predict: “Homebuilding stocks may cross the valley from recession to potential recovery in the second half of 2023.”
  • Mortgage rates soared to a two-decade high in 2022, leading to a deep slump in the housing market and sales of new U.S. homes falling by 17% from the previous year.
  • Homebuilders reduced prices and offered incentives to buyers, such as: covering closing costs to counteract the negative impact of high mortgage rates on demand.
  • A modest easing in mortgage rates this year has helped to entice buyers, leading to a rise in new home sales every month in December, January, and February.
  • Sales of new and existing homes are expected to remain low this year, but some builders are raising prices and dialing back incentives in anticipation of demand.
  • The number of existing homes for sale remains near historic lows, allowing homebuilders to take market share.
  • From 2000 until the pandemic, new homes represent about 11% of all homes for sale. This year, that figure has risen to 27%.

The 2023 U.S. New-Home Market Predictions are in line with what Wall Street expects: a robust 2023 Home Market, which is good news. We will closely monitor it. Stay tuned.