The number of homes on the market are starting to fall again leaving just about 3 1/2 months of total inventory, which is well below the long-term average of homes available on the market. This massive decline in available homes is mostly because sellers are being stingy and not selling while investors are holding onto homes long term. Also new home building is starting to decline rapidly and less and less homes will be on the market to satisfy the demand for housing.
The 2023 housing outlook appears to have home prices falling slightly, while some sources predict a year over year increase in home prices in the US. Mortgage interest rates are likely to decline throughout 2023 into 2024 putting upwards pressure back on home prices. Home affordability is still near records lows.