Home sellers should brace themselves for a tough year ahead, with one real estate group forecasting that property sales could tumble in 2023 as more buyers are sidelined by rising mortgage rates and out-of-reach home prices.
The number of homes sold will likely plunge 14.1% to 4.53 million homes, representing the lowest number of property transactions since 2012, when the U.S. was still recovering from the housing crash and Great Recession, according to according to Realtor.com’s 2023 Housing Forecast.
The pandemic triggered a massive boom in real estate sales, bolstered by a combination of record-low mortgage rates and work-from-home-orders from many employers. Since early 2020, home prices have surged almost 40%, while mortgage rates have more than doubled since year-start, a double-whammy that has priced many buyers out of the market.
Sellers may feel the brunt of that impact next year, according to the new Realtor.com forecast.
“High home prices and mortgage rates [will] limit the pool of eligible home buyers” in 2023, it said.
Home sales are expected to dip the most in California and Florida. The biggest decline in sales volume will be in these cities, Realtor.com forecasted.
If there’s a bright side for sellers, it’s that the average sales price in the nation’s top 100 markets is likely to increase next year by an average 5.4%, according to Realtor.com’s 2023 Housing Forecast.
Not everyone’s outlook on home prices in 2023 is as sunny. Some economists are predicting that real estate values could plunge by as much as 20% next year due to the surge in mortgage rates and economic uncertainty.
Even though Realtor.com is forecasting higher housing prices next year, the pace of escalation represents a slower rate than the blistering increases of the past two years. Prices will be elevated during the first half of 2023, but are likely to fall or stay flat during the second half of next year, Realtor.com’s Chief Economist Danielle Hale told CBS MoneyWatch.
“We expect, for the year as a whole, 2023 is going to be higher,” Hale said. “Shoppers who want to buy might have to wait a little bit.”
The elevated prices will be more dramatic in some cities than others, Realtor.com predicted. Metro areas that could see the sharpest increases are:
Those higher prices could be discouraging for buyers who have already faced sharply higher real estate valuations in 2022. Some cities in particular — like Boise, Idaho; and Austin, Texas — saw double-digit percent increases this year.
The rising cost of homeownership deterred many aspiring buyers, who have opted instead to continue renting. In a recent survey from LendingTree, nearly half of respondents said they were postponing major decisions, either renting for longer period of time or putting off major home renovations.
Home prices have fallen in some areas during the tail end of 2022, but mortgage rates have continued to climb. The average interest rate for a 30-year fixed mortgage was about 6.6% this week, more than double what the rate was at the start of the year.
Realtor.com expects mortgage rates to climb even further at the beginning of next year as the Federal Reserve continues to raise its benchmark interest rate. Mortgage rates could reach as high as 7.4% in the first half of 2023 before settling down to around 7.1% toward the second half of the year, the company said.
The combination of higher home prices and mortgage rates in 2023 could push the typical monthly mortgage payment in 2023 to $2,430, or 28% higher than this year, Realtor.com predicted.
Mortgage rates rose so quickly this year that it was at times difficult for buyers to figure out how much home they could afford, Hale said. In 2023, interest rates probably won’t fluctuate as much, she said.
“Having more stability will make it easier for buyers when setting the right budget,” she said. “And that should help encourage people to get back into the housing market.”
With buyers sitting on the sidelines, the number of homes available for sale is expected to climb nearly 23% next year. The upside for buyers is a greater variety of choices, while sellers will be facing more competition.
To be sure, all of these predictions could change depending how the Fed handles its fight against inflation next month and early next year, Hale said. The Fed has raised its benchmark rate six times this year, and with each hike mortgage rates have climbed as well. Hale and other economists expect the Fed to raise its rate again next month, but perhaps by not as much as previous increases.
Khristopher J. Brooks is a reporter for CBS MoneyWatch covering business, consumer and financial stories that range from economic inequality and housing issues to bankruptcies and the business of sports.
Pope in Hungary meets with Ukrainian refugees, Russian envoy
Pope Francis plunged into both sides of Russia’s war with Ukraine on Saturday, greeting some of the 2.5 million Ukrainian refugees who have fled across the border to Hungary during a public prayer service and then meeting privately with an envoy of the Russian Orthodox Church that has strongly supported the war.
Francis maintained the Vatican’s tradition of diplomatic neutrality during his second day in Budapest, where he’s on a weekend visit to minister to Hungary’s Catholic faithful.
Starting the day, he thanked Hungarians for welcoming Ukrainian refugees and urged them to help anyone in need. He called for a culture of charity in a country where the prime minister has justified firm anti-immigration policies with fears that migration threatens Europe’s Christian culture.
Speaking in the white-brick St. Elizabeth’s church, named for a princess who renounced her wealth to care for the poor, Francis recalled that the Gospel instructs Christians to show love and compassion to all, especially those experiencing poverty and “even those who are not believers.”
“The love that Jesus gives us and commands us to practice can help to uproot the evils of indifference and selfishness from society, from our cities and the places where we live — indifference is a plague —- and to rekindle hope for a new, more just and fraternal world, where all can feel at home,” he said.
Hungary’s nationalist government has implemented firm anti-immigration policies and refused to accept many asylum-seekers trying to enter the country through its southern border, leading to prolonged legal disputes with the European Union.
The conservative populist prime minister, Viktor Orbán, has said that migration threatens to replace Europe’s Christian culture. Orbán, who has held office since 2010, has hinged multiple election campaigns on the threats he alleges that migrants and refugees pose to Hungarians.
While Orbán’s government has consistently rejected asylum-seekers from the Middle East and Africa, around 2.5 million Ukrainians fleeing war in their country found open doors. Around 35,000 of the refugees remain in Hungary and have registered for temporary protection there, according to the U.N.
One who has chosen to stay was Olesia Misiats, a nurse who worked in a Kyiv COVID-19 hospital when she fled with her mother and two daughters on Feb. 24, 2022 — the day Russia launched a full-scale invasion of Ukraine.
First she went to the Netherlands, but high costs compelled her to move to Hungary, where she said she has found an apartment and given birth to her third daughter, Mila, who was in the pews Saturday with her mother and sister.
“Here it’s safe,” Misiats said of her new life. She said that she hopes to return to Kyiv one day, but for now she and her children are adapting. “I want to go back home. There it’s my life — it was my life,” she said. “But the war changed my life.”
Immediately after greeting and encouraging the refugees, Francis visited the Greek Catholic church next door, which has been providing aid to refugees. And then he met with the Russian Orthodox Church’s representative in Hungary, Metropolitan Hilarion, who developed close relations with the Vatican during his years as the Russian church’s foreign minister. The Vatican said the 20-minute meeting at the Holy See’s embassy in Budapest was “cordial.”
The Russian church’s strong support for the Kremlin’s war has rankled the Vatican and prevented a second papal meeting with Patriarch Kirill, the head of the Russian Orthodox Church and an ally of Russian President Vladimir Putin. Francis and Kirill had a 2016 encounter in Cuba that marked the first between a pope and the head of the Russian church. They had planned a second one in June, but the meeting has been indefinitely postponed over Kirill’s support for the war.
In a statement, Hilarion’s office said that he briefed Francis on the social and educational activities of the Russian church in Hungary and its relations with the Catholic Church here. He said that he gave the pope an Italian translation of a six-volume opus on the life of Christ.
Francis’ visit to Hungary, his second in as many years, is bringing him as close as he’s come to the front lines of the war. Upon arriving in Budapest on Friday, he denounced the “adolescent belligerence” that had brought war back to European soil and demanded the EU recover its values of peaceful unity to end
As battle for Sudan continues, civilian deaths top 400
– Gunfire and heavy artillery fire persisted Saturday in parts of Sudan’s capital Khartoum, residents said, despite the extension of a cease-fire between the country’s two top generals, whose battle for power has killed hundreds and sent thousands fleeing for their lives.
With ordinary Sudanese caught in the crossfire, the civilian death toll jumped Saturday to 411 people, according to the Sudan Doctors’ Syndicate, which monitors casualties. In some areas in and around the capital, residents reported that shops were reopening and normalcy gradually returning as the scale of fighting dwindled after the shaky truce. But in other areas, terrified residents reported explosions thundering around them and fighters ransacking houses.
Now in its third week, the fighting has wounded 2,023 civilians, the syndicate added, although the true toll is expected to be much higher. The Sudanese Health Ministry put the overall death toll, including fighters, at 528, with 4,500 wounded. In the city of Genena, the provincial capital of war-ravaged West Darfur, intensified violence has killed 89 people, the Doctors’ Syndicate said.
Khartoum, a city of some 5 million people, has been transformed into a front line in the grinding conflict between Gen. Abdel Fattah Burhan, the commander of Sudan’s military, and Gen. Mohammed Hamdan Dagalo, who leads the powerful paramilitary group known as the Rapid Support Forces. The outbreak of violence has dashed once-euphoric hopes for a democratic transition in Sudan after a popular uprising helped oust former dictator Omar al-Bashir.
Foreign countries continued to evacuate their citizens while hundreds of thousands of Sudanese fled across borders. The first convoy organized by the United States to evacuate hundreds of American citizens from the conflict reached the coastal city of Port Sudan Saturday after a dangerous overland journey escorted by armed drones.
Britain meanwhile was ending its evacuation flights Saturday, after demand for spots on the planes declined. The United Arab Emirates announced Saturday it had started evacuating its own citizens along with nationals of 16 other countries.
Over 50,000 Sudanese refugees — mostly women and children — have crossed over to Chad, Egypt, South Sudan and the Central African Republic, the United Nations said, raising fears of regional instability. Ethnic fighting and turmoil has scarred South Sudan and the Central African Republic for years while a 2021 coup has derailed Chad’s own democratic transition.
Those who escape the fighting in Khartoum face more dangers on their way to safety. The route to Port Sudan, where ships evacuate people via the Red Sea, has proven long, exhausting and risky. Hatim el-Madani, a former journalist, said that paramilitary fighters were stopping refugees at roadblocks outside Khartoum, demanding they hand over their phones and valuables.
“There’s an outlaw, bandit-like nature to the RSF,” he said, referring to Dagalo’s Rapid Support Forces. “They don’t have a supply line in place. That could get worse in the coming days.”
Airlifts from the country amid the chaotic fighting also posed challenges, with a Turkish evacuation plane even hit by gunfire outside Khartoum on Friday.
On Saturday — despite a cease-fire extended under heavy international pressure early Friday — clashes continued around the presidential palace, headquarters of the state broadcaster and a military base in Khartoum, residents said. The battles sent thick columns of black smoke billowing over the city skyline.
But in other areas, residents reported signs that the cease-fire had taken hold.
“We are not hearing the bombs as we did before, so we’re hoping that this means they will go back to a political process,” said Osman Mirgany, a columnist and editor of the daily al-Tayar, who assessed it was safe enough on Friday to return home to Khartoum after seeking refuge in a far-flung village.
But Khartoum residents are forced to live side by side with armed fighters. Many RSF militants have moved into civilian homes and taken over stores and hospitals in the capital. The paramilitary group even transformed Mirgany’s newsroom into a makeshift base, he said. Residents also must cope without sufficient electricity and running water, among other basic supplies.
“For the past 14 days we’ve suffered from a lack of everything,” Mirgany said.
Residents in the city of Omdurman, west of Khartoum, have been waiting at least three days to get fuel — complicating their escape plans.
The U.N. relief coordinator, Martin Griffiths, said that U.N. offices in Khartoum, as well as the cities of Genena and Nyala in Darfur had been attacked and looted. Genena’s main hospital was also leveled in the fighting, Sudan’s health ministry said.
“This is unacceptable — and prohibited under international law,” Griffiths said.
Will you marry me?’ Bulgarian woman contacts News 6 to expose international romance scheme
A 52-year-old Bulgarian woman currently working in Ireland is the latest target of international imposters who use stolen photos of a handsome Carnival Cruise Line officer in an online dating scheme that steals victims’ money.
Alessandro Cinquini, 29, who is known on dating sites as “Alex the Officer,” first contacted News 6 in March 2022 when he discovered his photographs were being used to fool women from Florida to India.
Vanya Dimova contacted News 6 after seeing our reports about Cinquini on the web.
She said an Alex imposter sent her photos and videos of lavish gifts that included a shimmering engagement ring.
Alessandro Cinquini has gone public to warn women across the globe that imposters have stolen his photographs from social media platforms to create “catfish” style profiles that offer love but target money.
News 6 sent 15 questions to her in advance so Dimova could translate and prepare responses during a Zoom interview.
She said she met the Alex imposter on Instagram back on March 26. According to Dimova, the conversation went from casual to romantic very quickly.
“After two days, he told me he was in love with me,” Danya told News 6. “Every day, he tell me he want to buy a house in Bulgaria and live together.”
Cinquini told News 6 the imposters have never stopped using his photos and he assured us he never contacted Dimova.
They have my old pictures from my old life,” Cinquini said. “Most of those pictures aren’t on my Instagram anymore. I canceled them years ago.”
He told News 6 he currently works as a fleet operation center watch officer for Carnival Cruise Line.
Danya sent News 6 a voice message from a man claiming to be Alex.
“I love you, I love you,” the man said.
The voice sounded nothing like Cinquini
Danya said that voice recording was the only evidence she has. She never met the imposter face-to-face or spoke to him on FaceTime or Zoom.
Danya said she became suspicious when the imposter asked her to pay the shipping charges for her gifts. He sent her a Bank of America receipt to prove his account had been frozen.
According to the Federal Trade Commission, romance scams in the U.S alone netted an estimated $1.3 billion last year, impacting 70,000 men and women.
News2 years ago
Kareem Chenheu: Hot New Talent Dominating The Market
News2 years ago
Apocalyptin Author Anna Parkman – Mrs. Florida In This Year’s Mrs. USA Pageant
Sports12 months ago
McDaniel Discusses Coaching Staff Moves
Florida1 year ago
True: Nothing Says Miami (government) Like Billboards
Entertainment2 years ago
Super slick singer van hechter tells all about unpcoming new single ”Love in Miami”!
Business2 years ago
WorldStaff USA: The Top 5 Benefits of Hiring an Employment Agency
Entertainment2 years ago
JLGSTEPA arrives with his new song “Cerveza” Ft Reventando Cráneos
News2 years ago
Rueda Empire: The successful Music Producer