What To Expect Out Of 2023! The Best Time To Buy?
Price growth in the housing market is expected to slow down in 2023, preventing the Covid price boom from continuing officially. The current prediction is an increase of only 0.3% to an average home price of nearly $455,000. That means that the housing market is still growing, just at a slower pace.
According to the NAR, we’ve prevented a major crash or anything close to a crisis. The job market has held steady, some markets have remained on price, and inflation has begun its descent. Yun points out that ‘‘today there are some layoffs in the mortgage industry and maybe the technology industry has stopped hiring people, but if you look at the net, there are still job creating conditions.’’
One major factor that has helped prevent a housing crash is the mortgage market. After the subprime mortgage crisis of 2008, rules about borrowing were tightened up and this has made the housing market more resilient. “Subprime mortgages, those shady, risky loans that were common a few years ago, are no longer popular,” said Yun. The NAR also predicts that rates on mortgages will fall below 6% sometime during Q3 2023 and remain there through the end of the year.
The effect of the shortage of available homes will not be remedied any time soon. This means that the demand for homes will continue to prop up the market, keeping home prices stable in most areas unless you are in California, which is predicted to experience a significant decrease in home prices of 10-15%.
What Markets To Focus On
The NAR points towards the following metros as the housing market hotspots of 2023:
- Atlanta, Georgia
- Raleigh, North Carolina
- Dallas-Fort Worth, Texas
- Fayetteville-Springdale-Rogers, Arkansas-Missouri
- Greenville, South Carolina
- Charleston, South Carolina
- Huntsville, Alabama
- Jacksonville, Florida
- San Antonio, Texas
- Knoxville, Tennessee
Check out www.rentreasy.com for more content!