Home sales in the Twin Cities during 2023 are expected to be on par with 2022 despite the ongoing pressure of higher mortgage rates, analysts and participants in the market say.
Meanwhile, price gains will be in line with the national average, though that's partly a sign of a cooling off at the national level.
Home construction will remain tepid.
Here's a complete rundown of predictions for the Twin Cities home market, along with U.S. comparisons, in 2023:
Sales
The National Association of Realtors (NAR) calls 2023 "the year of the turning point," though how much things turn remains to be seen. The past year didn't come close to matching record sales during 2021 and home sales in the coming year will at least be flat compared with 2022.
That makes the Twin Cities a standout. Realtor.com predicts Twin Cities metro sales to be down 0.8% year over year compared with a 14% decline nationwide.
Economists with the online brokerage Redfin say with would-be buyers pressing pause because of affordability challenges led by high mortgage rates, people will only move if necessary. Redfin sees a 16% drop in home sales nationally in 2023.