Westport Real Estate Market Forecast 2023

Buying a house is a big investment, and you want to know you made the right choice at the right time. With the current housing market wracked with uncertainty, it can be hard to know if now is the right time to buy. Since 2020, the housing market has been sent spinning. With inflation at an all-time high, interest rates rising, and housing inventory low, there is little certainty in what we can expect in the years to come. If you are looking to buy Westport, CT, real estate, rest assured economists have been working hard to predict what you can expect in 2023.

Before we can understand the prediction for the 2023 housing market in Westport, it is helpful to know what contributes to market conditions. Several factors affect the housing market and are used to make predictions.

Current economic conditions have a huge impact on how economists will forecast the market. If the economy is going strong, consumers tend to spend more money, leading to increased demand and higher home prices. However, in times of economic uncertainty, people are more likely to be conservative when planning their next move.

Interest rates will affect the buying power of those looking to purchase a home. With interest rates high, people are less likely to look for their dream home. Higher interest rates saddle buyers with higher mortgage payments, meaning they may be unable to afford the type of property they were planning to purchase.

Since 2020, the housing market has been unpredictable and has gone through several ups and downs. In early 2020, many people were driven to buy a home due to the Covid-19 pandemic. This flood of buyers led to a housing shortage that, in turn, caused prices to soar. Since then, the balance of supply and demand has yet to level out, home prices remain high, and listings are met with fierce competition. Now with inflation and high-interest rates looming overhead, many are left feeling uncertain about what lies in store. Economists predict that the market will go either one of two ways in 2023.

Some experts are predicting 2023 turning into a seller’s market, characterized by quick sales and high selling prices. Currently, demand for housing still outweighs supply, meaning the market could get pushed in favor of sellers. Today, many are fed up with high rent prices and are willing to buy a home, even if that means spending more than anticipated. Meanwhile, many buyers will not let high-interest rates get in the way of their home ownership dreams. Because of that, there could continue to be a steady stream of buyers keeping home prices high throughout early 2023.

With interest rates continuing to rise and high inflation, many buyers may opt to wait for better economic conditions before purchasing a home. With less demand, housing prices could go down in the coming months. A possible recession could mean prices dramatically plummet in 2023. However, even if this scenario plays out, economists predict a rebound in late 2023.

Westport, Connecticut, is a posh town located on the Long Island Sound. Offering many luxurious suburban neighborhoods and a wide range of attractions, Westport is a premier destination for homebuyers. The quaint town of Westport has its own set of driving factors behind its housing market. While it may mimic the national housing market, there are a few key differences you will want to keep an eye on if you are planning to buy or sell in Westport in 2023.

Even with uncertain national economic conditions, the Westport real estate market is predicted to stay strong through 2023. Today the median listing price in Westport is $1,135,074. Home prices in Westport are expected to continue to rise long into the future, with a five-year prediction putting the average listing price at $1,193,936.

Despite high-interest rates and decreasing inventory, now is still a good time to buy a long-term investment property in Westport. While now might not be the best time for a short-term investment, long-term investments over the next five years are predicted to yield a 5.19% return.

Known for its posh neighborhoods, ideal location, and high cost of living in Westport, the town is home to a huge selection of luxury properties. If you are looking to purchase a high-end property in Westport in 2023, the regular market forecast will not be applicable. Luxury homes are not subjected to market conditions the same way regular homes are and tend to face fewer ups and downs.

The luxury real estate market is predicted to stay strong through 2023, despite uncertain economic conditions and a high mortgage rate. Investors are flocking to luxury real estate because of the high investment potential. High-end properties tend not to depreciate over time, making them valuable assets. With Westport home to many high-value properties, it is the perfect place to settle into luxury in 2023.

Buyers looking to purchase in Westport, Connecticut, may have to contend with high prices in 2023. Those willing to spend more are likely to find less competition if interest rates continue to rise. In the event of a recession in 2023, home prices could drop dramatically. Buyers could get a home for a great price before the housing market picks up again. Others might be able to refinance to get a better interest rate on their mortgage.

Sellers can expect a strong real estate market in Westport into 2023. With an expected price drop occurring in late 2022 and into early 2023, there will likely be fewer listings. With buyer numbers projected to remain strong, supply and demand could work in the seller’s favor as buyers compete. With rent prices skyrocketing, many people are looking to buy now despite high-interest rates. Therefore, those looking to sell fast may be able to in early 2023. Sellers that are willing to wait out a dip in housing prices can expect an increase in late 2023 and a good return on investment.

If you are interested in purchasing a home in Westport in 2023, contact Joe Ferrigno to help you achieve your homeownership goals. Joe Ferrigno has been in the mortgage industry for over 25 years and has the knowledge and tools to help get you into your next home.