Fannie Mae Predicts a Housing Market Downturn in 2023

A new report by Fannie Mae points to a strong possibility of a recession in a housing market downturn in 2023. The most striking piece of data from the Fannie Mae report is the substantial year-on-year decline in home sales as of July 2022. Home sales will likely not improve in 2023 with a further annual fall of 13.3%. Will this result in declining home values? Inevitably, yes. According to Redfin, as of September 2022, the average home is selling below asking price for the first time since March 2021.