According to the National Association of REALTORS® (NAR), The Annual Real Estate Forecast Summit, organized by the NAR, delivered its verdict on 2023 late last year. The prognosis, put together by NAR Chief Economist Lawrence Yun, can be summarized as a slow year for home sellers. The supply-demand gap will not be bridged anytime soon. This means that buyer demand will continue to prop up the market for many months to come, which will keep home prices stable in most areas unless you are in California, which is predicted to experience a significant decline in home prices of 10-15%. Although no immediate catastrophe is likely to hit the housing market, all the current trends point to a year of declining sales and slower home price growth in most areas. The current prediction is an average increase of just 0.3% to an average home price of nearly $455,000. What that really means is that the housing market is still growing, just slowly.
Having said that, Yun identifies several emerging housing markets that will likely experience price increases in 2023, much like Austin and other cities did during the pandemic.
The Next Austin?
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
The South will lead the way in 2023. According to Yun, “Southern states, generally speaking, meet the criteria of reasonable affordability, in-migration, and high-paying jobs being created.”
Real estate investors should take note of this trend if they want to capitalize on these market opportunities before they inevitably become oversaturated, as has been the case with Austin.
Looking to buy or sell? Give us a call!
