Last year was a roller coaster for the housing market. At the beginning of the year, home values soared.
But by December, higher mortgage rates and other factors had brought housing sales to a standstill in many places.
As the calendar turns to 2023, the cooling in housing is likely to continue, according to Zillow.
In a recent report on the state of housing in America, Anushna Prakash, economic data analyst at Zillow, says:
“This year’s hottest markets will feel much chillier than they did a year ago. The desire to move hasn’t changed, but both buyers and sellers are frozen in place by higher mortgage rates, slowing the housing market to a crawl.”
So which markets will fare best? Zillow says the following places still offer “relative affordability and room to grow,” making them the hottest housing markets of 2023.
Larry Flick, CEO of Berkshire Hathaway HomeServices Fox & Roach, Realtors, is confident that the local housing market in Philadelphia will improve in 2023.
As the new year dawned, he told the Philadelphia Business Journal:
“Even though home prices will remain stable, affordability will increase due to the decrease in interest rates that we’ll see.”
Karen Hatcher, Atlanta Realtors Association president, recently told the Atlanta Journal-Constitution that higher mortgage rates have reduced buyer demand in the metro. However, she is optimistic about the future:
“Buyers should continue to save, and be prepared financially to look for a home and make offers. A positive for buyers is that ‘no contingency offers have subsided’ and we are also seeing sellers contribute to closing costs again.”
Miami is one of the “10 Housing Markets Where Bidding Wars Are Disappearing.”
That trend should come as a relief to home shoppers looking for new digs in South Florida.
7. Kansas City, Missouri
If you like to work from home, Kansas City might be the perfect place to relocate to this year.
The city is among the “The Top 15 Cities for Remote Workers in 2023.”
6. Jacksonville, Florida
One recent report labeled Jacksonville as “one of the most stable markets in Florida in the foreseeable future.”
Sales are expected to dip modestly in the metro area this year, with prices inching higher.
Buyers in this Tennessee city will have greater leverage in 2023, according to Steve Jolly, president of Greater Nashville Realtors.
Late last year, he described the positive trends for buyers to a local TV station:
“They don’t have to give up as many of the terms that they were giving up last year. They can have an inspection, they can have an appraisal. They can actually get some closing costs paid or possibly even get an interest rate buydown so it’s more affordable that first and second year.”
As storm clouds brew over the economy, many people in Dallas will put off purchasing a home this year, says Taylor Walcik, president of the MetroTex Association of Realtors.
However, he tells Axios Dallas that opportunities will exist for buyers:
“There will always be people that absolutely must buy or sell homes, and that is what will be making up most of the housing market in 2023.”
Not only is Pittsburgh expected to be a hot housing market overall, but it’s also one of “The 10 Best Cities for First-Time Homebuyers in 2023.”
Are you planning to buy a home? Stop by the Money Talks News Solutions Center and find a great mortgage rate.
Sometimes, hot housing markets can pop up where you least expect. Cleveland might fall into that category.
In fact, the Rust Belt city is among the “15 Affordable Cities With the Most 6-Figure Jobs.”
1. Charlotte, North Carolina
Charlotte is one of the fastest-growing metros in the U.S. But the housing market in this North Carolina city is beginning to find a better balance.
As Maren Brisson-Kuester, COO of Corcoran HM Properties, told Axios Charlotte:
“Homes are not selling at 105% of the list price anymore. Due diligence fees are becoming a little more reasonable now, right as competition is slacking slightly.”