As you move into the new year, the real estate market is already starting to heat up. If you’re considering buying or selling a home in 2023, it is important to understand the latest trends to make informed decisions. Here are the top six trends that will shape the real estate market in 2023:
1. The Rise of First-Time Buyers
First-time buyers are expected to enter the market in greater numbers in 2023 than they have in recent years. Thanks to a combination of low-interest rates and an increasing number of millennials reaching key life milestones, more first-time buyers are expected to enter the market than at any time since 2007.
Not only are first-time buyers expected to be active in the market, but they are also expected to drive up prices. So, if you’re considering selling your home, now may be the time to do it.
2. The Decline of Luxury Real Estate
As the economy continues to rebound from the pandemic, world is likely to see a decline in luxury real estate sales. More high-end buyers are expected to enter the market searching for second homes, investment properties, and vacation homes. No matter your budget, it’s important to be aware that luxury buyers could drive up prices in your area.
With fewer luxury buyers in the market, there will also be a decrease in the construction of luxury homes. This could lead to a fall in home prices across the board, as the supply of housing decreases the demand.
3. The Return of Migration
After a brief slowdown during the pandemic, migration is expected to pick back up in 2023. This is good news for the housing market, as more people moving to an area generally leads to an increase in demand for housing.
If you live in a popular state with migrants, such as Florida or Texas, you may see your home values rise as a result. Conversely, if you live in a state that’s losing population, such as Illinois or New York, you may see your home values decline.
4. The Shift to Suburbs and Smaller Cities
For years, city living has been popular among young professionals and empty-nesters alike. But as housing costs continue to rise in major metropolitan areas, many people are increasingly looking to smaller cities and suburbs where they can get more bang for their buck.
This shift could mean increased demand and prices in these areas as buyers priced out of larger cities look for more affordable options. Not only that, but it could also lead to the revitalization of smaller cities and towns as more people move in and invest in these communities.
5. The Increase of Technology in Real Estate
Technology has always played a role in real estate, but its influence is only increasing. Homebuyers now expect properties to be marketed online with high-quality photos and detailed descriptions. They also want to be able to view houses virtually before ever stepping foot inside them.
With a single click, they can now put their house for sale online and be connected with thousands of potential buyers. They can also find out what comparable properties have sold for in their area and get real-time updates on the status of homes they’re interested in. And when it comes time to buy or sell a property, they expect a seamless transaction that’s conducted entirely online—from start to finish.
6. The Rise of Remote Work
The COVID-19 pandemic has led to a major shift in the way people work, with more and more people working remotely. And as remote work becomes more prevalent, it’s likely to significantly impact the real estate market.
For starters, people working remotely will no longer be tied to a specific location for their job. This could lead them to move to more affordable areas outside of expensive metros where they can buy a larger home or save money on rent. Additionally, remote work could lead to more people moving to rural areas where they can have more space. So, if you live in a rural area, your property values may increase as the demand for housing rises.
These are just a few of the trends that will shape the real estate market in 2023—it’s sure to be an exciting year! Whether you’re buying or selling a home, staying up-to-date on the latest trends is essential to make informed decisions throughout the process. So, be sure to keep an eye on these trends in the coming year and consult with a real estate professional if you have any questions.