Rising home prices, steady interest rates, low inventory of homes and a minor recession will all impact real estate in Fond du Lac and surrounding communities in 2023. After huge price increases the past few years expect the market to slowly shift back toward the direction of a more normal real estate market.
Home prices will continue to rise this year. While local home prices have jumped 11% and 8% the past two years expect prices to rise again this year, but closer to the more normal 5% appreciation we typically see in this area.
The Federal Reserve took the necessary steps to curb inflation by increasing interest rates last year. While rate increases make homes more expensive, they were very necessary to stabilize the market and prevent the type of “bubble burst” we saw in 2007.Expect interest rates to remain in the 5-7% range in 2023.
Plan on another year of low supply of homes compared to high buyer demand in the area. Low supply and high demand will continue through the year in our local marketplace.In the majority of price ranges this will mean another year of multiple buyers fighting over the same property and another year of strong pricing.
A short term and very moderate recession will continue in our local marketplace this year. However, our communities do not see the same dramatic fluctuations in home prices compared to the larger markets often discussed in the national news.
