Learn About Housing Market Trends

by | Real Estate

housing market trends

The housing market is a complex and dynamic industry that is constantly evolving. With that said, there are some trends that we can expect to see emerge in the near future. We’ll be talking about the current state of the market, the changes that will take place over the next few years, and how these trends will impact your business. Read on to learn more about housing market trends.

Fact, there is still the problem of sky-high mortgage rates. The bright side is that if buyers hold off, the supply of homes will increase, putting further pressure on sellers to decrease prices, as this would constitute a much needed course correction for the housing market. Mortgage rates are skyrocketing, home sales are declining, although the supply chain is improving. We are witnessing a sharp slowdown in the housing market due to higher mortgage rates.

In this article, as a realtor I discuss the key trends that are expected to shape the housing market in the coming years and the potential impact of each trend.

Rising Home Prices

Despite economic impacts of the pandemic, housing prices have continued to rise due to limited supply and high demand. This is good news for homeowners as it could make it a bit more difficult for some individuals to enter the housing market. Trends towards rising home prices is expected to persist, most particularly in urban areas where the supply is somewhat limited.

Increase in Demand for Affordable Housing

The demand for affordable housing is one of the most pressing issues in the housing market and realtors are up for the task. A rise in housing prices, combined with stagnant wages, has made it difficult for many to find safe and secure housing. In 2023, it’s expected that access to affordable housing will continue to be a challenge in the near future. Innovations and solutions are necessary to address issues to provide affordable housing options for those in need.

Strict Mortgage Standards

As our economy recovers and interest rates rise, mortgage lenders typically become more cautious about who they lend to. This could make it more difficult for some people to obtain  a mortgage, becoming homeowners. Stricter mortgage standards are certainly a potential barrier for those seeking to enter into the housing market.

Shifts toward Suburban and Rural Areas

The pandemic has caused many people to reevaluate where they live. Larger homes with more space has become increasingly important. This shift in priorities has shifted towards a greater demand for housing in suburban and rural areas, leading to higher prices. This trend is expected to continue in 2023, especially because working remotely has become more prevalent.

Increases in Technology

The pandemic has also accelerated the adoption of technology in the real estate industry. Virtual home tours and digital transactions have become much more common. This trend is expected to continue in 2023, with technological investments helping to streamline the home buying and selling process. This technology could also play a role in addressing the challenges of affordable housing, with innovations such as modular homes and 3D printing, and more on the horizon.

While predicting the future is never easy, understanding these trends can help individuals and policymakers make informed decisions about the housing market. The housing market in 2023 will be shaped by economic, social, and technological factors. You can expect realtors to always adapt to changes.

Existing-home sales in the South rose 1.1% in January from December to an annual rate of 1.82 million, a 36.6% decrease from the prior year. The median price in the South was $332,500, an increase of 3.4% from one year ago. The South remains the most active region of the country in terms of existing-home sales, and the modest increase in sales in January suggests that demand for homes remains strong despite the challenges of the pandemic.

QUESTIONS? CALL ME!