The housing market is constantly evolving, influenced by various factors such as economic conditions, demographic shifts, and technological advancements. Now in 2023, several trends are shaping the real estate landscape.
In our guide below, we will explore the latest trends in the housing market for 2023. This will provide insights into what homebuyers, sellers, and investors can expect in the coming year.
Continued Rise in Prices
The trend of rising home prices is expected to continue in 2023. Regional variations, high demand, limited supply, and low mortgage rates influence price increases.
Homebuyers should be prepared for a competitive market, with the need for proactive strategies such as pre-approval for mortgages and prompt decision-making. Those selling homes also want to keep this in mind because there are still profits to be made. Searching for terms like “sell my house fast” is a great way to increase your chances of selling your home while the market is on the higher end.
Tight inventory is keeping prices on the higher end as well. Those who recently purchased homes with record-low low-interest rates are not selling.
More Friends and Family Will Buy Together
There was a survey done that found that around 18% of successful home buyers bought with a friend or relative who was not a partner. Buying a house is usually the most significant purchase anyone will make, so buying a home with someone else can help boost your debt-to-income ratio.
Buying with friends and family is a creative way to cut down on the costs of purchasing a home.
New Construction Equals More Bargains
Because fewer people are buying a house, there has been an oversupply in new construction inventory. This is why those who are purchasing new construction might have an upper hand when negotiating home prices with builders. Since 2020, new construction homes are up around 50%, which means that newly completed homes are coming onto the market but with lower buyer demand.
The real estate market in the middle of the country will grow more in demand because home prices have not increased like in other parts of the country. Places like Missouri, Kansas, Iowa, Oklahoma, and Illinois have more affordable home options.
The mortgage-to-income ratio is below the national average. This gives these areas a more decent housing inventory.
Feeling Like a Housing Market Pro?
Now that you are aware of the housing market trends you can expect, it will make it easier to make informed decisions. Whether you are selling a house, buying a home, or investing your money in real estate, you want to be careful with where you put your money. Did you find our article helpful? If so, we have more where this came from. Keep browsing this section for our latest.
Read more: How Much Does It Cost to Build a House