Real Estate Rundown January 2023
December 30, 2022
What can we expect home sales to look like in the new year? Chief economist at the National Association of Realtors, Lawrence Yun, reports that US home sales can be expected to decline by 6.8% in 2023. Yun forecasts about 4.78 million existing homes to be sold in 2023, compared to 5.13 million in 2022.
The NAR also suggests that 2023 likely will become a year of normalcy regaining the market. Mortgage rates are expected to stabilize and home sales and prices are forecasted to moderate after recent highs. This may look different from region to region, as some parts of the country may experience small price gains, while others may see slight price declines. Regions that experienced surging prices during the pandemic such as San Fransisco, Seattle, Las Vegas, and Phoenix, could see the most exaggerated declines of up to 12% in the coming year.
Additionally, the consumer price index stated that inflation is further cooling, encouraging the federal reserve to begin slowing the hikes back to the benchmark interest rate. If inflation continues to slow and rates stabilize, it could bring more buyers back to the market and boost demand for housing. This offers hope of the market returning to normalcy.
Hot Real Estate Markets to Keep an Eye on in 2023
NAR listed the top 10 real estate markets that it expects to outperform other metro areas in 2023:
1. Atlanta-Sandy Springs-Marietta, Georgia
2. Raleigh, North Carolina
3. Dallas-Fort Worth-Arlington, Texas
4. Fayetteville-Springdale-Rogers, Arkansas-Missouri
5. Greenville-Anderson-Mauldin, South Carolina
6. Charleston-North Charleston, South Carolina
7. Huntsville, Alabama
8. Jacksonville, Florida
9. San Antonio-New Braunfels, Texas
10. Knoxville, Tennessee
*These areas were chosen based on how they compared to the national average on indicators such as better housing affordability, migration gains, faster growth of active housing inventory, smaller housing shortages, etc.
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