The housing market is slowing down, but some areas will see more buzz in 2023. Florida real estate was hot during 2022, with Tennessee, the Carolinas and Texas metro areas also featuring prominently on a list of the 100 largest metros where prices have risen most significantly, according to Zillow Z. But other more affordable regions are expected to pop in 2023.The housing market is slowing down, but some areas will see more buzz in 2023.
“Enter the Midwest,” the report added. “Unlike nearly every other region in the United States, prices in most Midwest metro areas haven’t run up to extremes. Mortgage costs as a share of income are still within healthy, sub-30% levels across Ohio, Pennsylvania, Kansas, upstate New York, Iowa and smaller metros in Illinois, which will allow first-time buyers to take the plunge.”
Realtor.com sees prices in 2022 rising by 7.3% — versus 5.4% nationally — in these top 10 markets, which are largely located in mid-size markets east of the Mississippi River, with local industry tied to manufacturing, education, healthcare and government. Annual sales in these markets will grow by over 5% in 2022, compared to a projected drop of 14% in national housing sales.
More affordable places, but rising interest costs Home hunters, especially first-time buyers, will be looking for more affordable places to live in 2023, with the 30-year mortgage interest rate currently hovering around 7%, double the rate this time last year. “Many of these areas flew under the radar in the pandemic frenzy, and are now well-positioned to bubble up with solid job prospects without the big-city price tag,” Hale added.