Whether you’ve been in the industry for years, are just starting out as a new real estate agent, or you’re thinking about getting your license, it’s important to stay up to date on the latest real estate trends. With big changes expected in 2023, now is the time to prepare both yourself and your clients for what’s to come.
After several years of buyer frenzy that often resulted in bidding wars, in 2022, the housing market saw a bit of a slowdown due to rising inflation and mortgage rates. As a result, the housing market expectations for 2023 are a bit bleak. Experts predict continued cooling, fewer qualified buyers, a drop in home prices, and an increase in inventory.
Despite this shift in homebuying trends, there are some real estate markets that are expected to remain hot in 2023. Arecent report released by the National Association of Realtors (NAR) Research Group ranked areas across the U.S. based on home affordability, inventory levels, population growth, job opportunities, and more. According to the report, the following areas may be the best places to buy a home this year.
1. Atlanta, GA
The city of Atlanta has been nicknamed the “New York of the South” thanks to its robust and growing job market. Although major companies including Microsoft, Visa, and Apple have all relocated to Atlanta in recent years, the metro area remains relatively affordable for home buyers. The median home price here is $371,200, and statistics show that more than 20% of the area’s renters could afford to buy a median-priced home. This is significantly higher than the national average of 15.1%.
2. Raleigh, NC
Another fast-growing tech hub, Raleigh is a city with low unemployment and high quality of life. It is also the most expensive of the top markets for 2023, with a median home price of $460,500. While home prices in the Raleigh area have increased by almost 30% since 2020, home inventory has risen by 188% over the past 12 months. This could be an indication that prices will start to come down in the near future.
3. Dallas-Fort Worth-Arlington, TX
Job growth in Dallas-Fort Worth is nearly double the national average, with many open positions coming from the area's booming tech industry. The median home price here is $390,100. While the inventory of homes in the Dallas-Fort Worth-Arlington area is lower than the national average, it increased in 2022, and this trend is expected to continue in 2023.
4. Fayetteville-Springdale-Rogers, AK & MO
The Fayetteville-Springdale-Rogers area is growing at a rate of 2%, which is much higher than the national average of 0.01%. There are many things that make the area attractive, including a strong job market and affordable homes. The median home price here is $328,400, and the NAR ranked this metro area second among the top 10 for housing affordability. It’s also home to three Fortune 500 companies — Tyson Foods, Walmart, and J.B. Hunt Transport Services.
5. Charleston, SC
With a median home price of $416,800, the Charleston area is below the national average for home affordability. However, a large number of home buyers are migrating here, and job growth in the area is almost twice the national average. Luxury home sales in the Charleston area are booming, fueled by younger, out-of-state buyers who are attracted to the area's laid-back charm.
2024 Real Estate Outlook
While there are many variables that may influence the future, at this time, many experts predict a rough 2023 and a plateau or rebound in 2024. The NAR's Chief Economist Lawrence Yun predicts a 7% decline in home sales in 2023 but expects 2024 to bring a 10% increase in home sales and a 5% increase in the national median home price.
Now is a Great Time to Get Your Real Estate License
The changing real estate market can create excellent buying opportunities, making now a great time to become a licensed real estate agent. If you’re thinking about making this exciting career move, Aceable’s state-approved licensing courses will help you succeed. Check them out today!