Here’s a look ahead at the rest of the Fall real estate market and beyond:
Home Prices and Rent Growth
Get ready for a slowdown in home price and rent growth! Experts predict that things will level off in 2023 and carry into 2024. Surprisingly, rents might even outpace the appreciation of home prices. This is because the rental market stays strong and prices are expected to rise. To make matters more interesting, the number of renters is projected to increase, especially in urban areas where buying a home is becoming pricier.
Mortgage Rates and Inventory
High mortgage rates (above 6%), will continue to contribute to the significant expense of owning a home. In order to hold onto their favorable sub-4% rates, sellers are expected to remain in place, exacerbating the ongoing shortage in housing inventory. As a solution to afford more spacious properties and meet mortgage requirements, joint real estate purchases will become increasingly popular.
Buyer Trends
Get ready for a potential surge in first-time homebuyers! After a recent decline, the percentage of newcomers entering the housing market is projected to rise in early 2024. And guess what? Affordable markets in the Midwest, South, and Sunbelt regions are likely to be the hotspots for these eager buyers.
Why are so many young individuals looking to buy homes in these areas? Well, the rise of remote work has given them the freedom to relocate, and many are opting for these affordable regions to take advantage of the lower cost of living. Moreover, being closer to family and loved ones is playing a significant role in the decision-making process, with 17% of recent buyers citing it as their primary motivation. So get ready for a wave of new homeowners!
I’d love for you to join the conversation — comment with your thoughts and questions about real estate in 2023!
Source:
The Fed’s inflation-fighting tactic was effective in cooling the housing market. What now?
25+ Housing Market Predictions for the Next 5 Years [2023-2027]