10 Top Housing Markets for Buyers in 2023 (2024)

FAQs

What state has the best housing market 2023? ›

Texas replaced California in 2023 as the strongest housing market by state. With an existing home inventory of 83,222, the available houses for sale have more than doubled since last year. It has seen a drop of about 6% in new construction and is now at 248,648 since 2022.

Charlotte, a 211-mile drive from the sands of the Atlantic Ocean, nabbed the top spot on our list of the hottest housing markets for 2023 due to its forecasted annual home price growth. While considered the hottest market, activity may be less than what buyers and sellers saw in Tampa last year, says Prakash.

Homebuyer.com data analysis indicates that, for first-time home buyers, June 2023 is a good time to buy a house relative to later in the year. This article provides an unbiased look at current mortgage rates, housing market conditions, and market sentiment.

“Continued inflation, overall higher interest rates, a potential recession and geopolitical tensions will force 30-year and 15-year mortgage rates up throughout 2023, and will bring the two rates closer together as short-term risks rise,” says Dennis Shirshikov of real estate website Awning.com.

The hottest markets included two locales from Massachusetts and Connecticut, and one each from Pennsylvania, Rhode Island, New York and New Hampshire. The Hartford, CT metro is a particular stand out as it was ranked number one in the Top Markets Forecast for 2023.

Mississippi

Coming in as the cheapest state to live in in the United States is Mississippi with a cost of living index score of 83.3. It also has the lowest average housing costs in the nation at 33.7% below the national average. The median single family home costs around $140,818.

10% Return for S&P 500 a Real Possibility by End of 2023

Short of a recession — a very real possibility — consensus estimates are for about 5% earnings growth for S&P 500 companies in 2023. That's certainly less than what it was in years past, but still respectable.

In the first half of 2023, the S&P 500 is expected to re-test the lows of 2022, but a pivot from the Fed could drive an asset recovery later in the year, pushing the S&P 500 to 4,200 by year-end.

“[W]ith the rate of inflation decelerating rates should gently decline over the course of 2023.” Fannie Mae. 30-year fixed rate mortgage will average 6.4% for Q2 2023, according to the May Housing Forecast. National Association of Realtors (NAR).

How high will interest rates go in 2023? ›

So far in 2023, the Fed raised rates 0.25 percentage points twice. If they hike rates at the May meeting, it is likely to be another 0.25% jump, meaning interest rates will have increased by 0.75% in 2023, up to 5.25%.

In 2023, economic activity is projected to stagnate, with rising unemployment and falling inflation. Interest rates are projected to remain high initially and then gradually decrease in the next few years as inflation continues to slow.

Despite what some may think, 2023 is still a good year to invest in real estate, thanks to advantages like long-term appreciation, steady rental income, and the opportunity to hedge against inflation. Mortgage rates are expected to decline, but the housing market is likely to remain competitive due to low supply.

Nashville was the hottest market, with an average listing time of 14 days. Seattle was the second fastest-moving, averaging 17 days. Omaha and Salt Lake City both averaged 18 days, and Cincinnati, Birmingham, Charlotte, Denver, Las Vegas, Manchester and San Francisco were also among the busiest.

The hottest housing markets include those markets in North Carolina, Colorado and Texas that were also popular during the pandemic, including Raleigh and Durham, Denver and Austin. Markets to watch that improved the most between November and December 2022 include Portland, Oregon, Richmond, Virginia, and St.

At the state level, Oklahoma, Iowa, and Alaska have the most stable housing markets, as measured by the probability that a buyer purchasing a home at any point between 2000 and present would have experienced a greater-than-5% price drop following the purchase.

Hawaii is the most expensive state to live in, with a cost of living index of 184. Massachusetts is ranked second, with a cost of living index of 149.7, followed by California at 137.6, and New York at 134.5.

Mississippi is the state with the lowest cost of living in the US, with a cost of living index of 85. This means that the cost of living in Mississippi is 15% lower than the national average. The state has a low cost of housing, groceries, and utilities.

One of the most popular states to move to in 2023 is Texas, and for good reason. This state boasts an impressive job market since it is home to many tech companies, startups, and artistic hubs.

What 4 sectors to buy in 2023? ›

The best marketing strategy in 2023 will be one with integrated video and written content: Pringle adds that websites still need text information but adding video to showcase products (and then having the ability to add to social media) will help marketers expand their reach to a wider audience.

“The bear [market] is almost over, and a new exciting bull market awaits in the second half of 2023,” he said, pointing to potential in technology stocks in particular.

2023 is a great time to start investing. But so was 2022. The key point is that over the long term, investments generally do grow in value, even if there is some early volatility. It is far better to invest now, whenever now happens to be, rather than waiting for some ideal future opportunity.

We expect our core emerging market countries in Europe, the Middle East, and Africa (EM-EMEA; excluding Saudi Arabia), as well as countries in Latin America (LatAm), to grow well below longer-run trends in 2023, while India and countries in Southeast Asia will grow a tad under their respective trends.

The outlook is uncertain again amid financial sector turmoil, high inflation, ongoing effects of Russia's invasion of Ukraine, and three years of COVID. The baseline forecast is for growth to fall from 3.4 percent in 2022 to 2.8 percent in 2023, before settling at 3.0 percent in 2024.

There's good and bad news about the market and economy. The bad news is that a recession is looking more likely, with experts at JPMorgan Chase projecting a higher than 50% chance it will happen sometime in 2023. But the good news is that a bull market is coming -- perhaps sooner than you expect.

The stock market is poised for a strong 2024 as corporate earnings are poised to impress. "Earnings are likely to outpace the economy in 2024," Bank of America's Savita Subramanian said in a Monday note. Also helping the outlook for stocks is the trillions of dollars of sidelined cash that could get invested.

These organizations predict that mortgage rates will decline through the first quarter of 2024. Fannie Mae, Mortgage Bankers Association and National Association of Realtors expect mortgage rates to drop through the first quarter of 2024, by half a percentage point to about nine-tenths of a percentage point.

How long will interest rates stay high? ›

'I believe by the end of 2023 we will see rates start to fall with a target of between 2.5 to 3 per cent in 2024. 'I believe if the base rate can get back to circa 2.5 per cent, then we will see rates hovering around that mark with a return to products that have not been seen in the mortgage industry for some time.'

The Fed raises interest rates again in what could be its final attack on inflation. Federal Reserve Chair Jerome Powell speaks during a news conference at the Federal Reserve in Washington, D.C, on March 22, 2023. The Fed raised interest rates again Wednesday but signalled it may be the last hike for a while.

“We expect that 30-year mortgage rates will end 2023 at 5.2%,” the organization noted in its forecast commentary. It since has walked back its forecast slightly but still sees rates dipping below 6%, to 5.6%, by the end of the year.

The predictions made by the various analysts and banks provide insight into what the financial markets anticipate for interest rates over the next few years. Based on recent data, Trading Economics predicts a rise to 5% in 2023 before falling back down to 4.25% in 2024 and 3.25% in 2025.

Dealing with unrealistic sellers

Many sellers compare their houses to those in the neighborhood and want to sell them as quickly as others. It's your responsibility to make them understand the real scenario. This is one of the most common problems that real estate markets face.

Will house prices go down in a recession? While the cost of financing a home typically increases when interest rates are on the rise, home prices themselves may actually decline. “Usually, during a recession or periods of higher interest rates, demand slows and values of homes come down,” says Miller.

In Broward, condo prices rose to $269,500, a boost from $238,500 last March. Although the South Florida housing market has begun slowing after its frenetic peak pandemic pace, most budget-conscious and first-time homebuyers remain sidelined because they still can't afford to buy homes.

Inflation rates will decline markedly in 2023 but remain higher than the market anticipates. The Fed will slow its tightening cycle and eventually stop hiking rates during 2023, but its policy rate will remain higher for longer than expected. The US economy will decelerate into a recession.

What are the top economic concerns for 2023? ›

In 2022, house flippers generated an average gross profit of over $70,000 per property, according to ATTOM Data Solutions. In 2023, house flipping will remain a profitable real estate investing strategy and some of the best cities to flip houses could suprise you.

Although home prices are expected to improve in the second half of the year, the California median home price is projected to decrease by 5.6 percent to $776,600 in 2023, down from the median price of $822,300 recorded in 2022.

Despite what some may think, 2023 is still a good year to invest in real estate, thanks to advantages like long-term appreciation, steady rental income, and the opportunity to hedge against inflation. Mortgage rates are expected to decline, but the housing market is likely to remain competitive due to low supply.

What state has the highest ROI on real estate? The state with the highest one-year ROI on residential single-family homes is Arizona with 27.42 percent, according to iPropertyManagement data. The next two highest states are Utah with 27.05 percent and Idaho with 27.02 percent.

While some areas may experience an increase in housing prices, others may experience a decline. In Dallas, TX, housing prices are expected to decrease by 0.1% as of April 2023, followed by a further decline of 0.3% in June 2023, but are projected to increase by 0.7% by March 2024.

Experts are predicting another 10% to 15% drop by the second or third quarter of 2023, according to multiple sources. Several other factors point to a further home price correction.

If you need to be occupying your home by a certain date to save on rent, it's a much better deal to close at the end of the previous month (for example, January 30) instead of the beginning of the current month (February 1).

Will mortgage rates drop in 2024? ›

Fannie Mae, Mortgage Bankers Association and National Association of Realtors expect mortgage rates to drop through the first quarter of 2024, by half a percentage point to about nine-tenths of a percentage point. Figures are the predicted quarterly average rates for the 30-year fixed-rate mortgage.

Is House Flipping Profitable in 2023? Yes! If you get the basics right, flipping homes in California is easier in 2023 than flipping homes in 2021's competitive market. You Make Money When You Buy Your Flip: Stick to the home flipper's 70% rule.

1. Hawaii. Hawaii residents enjoy the lowest property tax rate in the U.S. However, the high cost of living and limited housing opportunities make it a very expensive place to live.

The hottest housing markets include those markets in North Carolina, Colorado and Texas that were also popular during the pandemic, including Raleigh and Durham, Denver and Austin. Markets to watch that improved the most between November and December 2022 include Portland, Oregon, Richmond, Virginia, and St. Louis.

The state is still in seller's market territory: Demand remains high, and prices are still up year-over-year, despite the decline in the last several months.

Average Home Value Increase Per Year

National appreciation values average around 3.5 to 3.8 percent per year. Ownerly explains that the average home appreciation per year is based on local housing market trends as well as the economy, and this makes for a great deal of fluctuation.

The Federal Reserve Bank of Dallas reports that Texas' residential construction job count fell more than total employment during the recession, and took more time to rebound. The shortage of carpenters, masons and other skilled workers led to higher wages, which increase the bottom-line price of homes.