February 2023 Hottest Housing Markets (2024)

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February 2023 Hottest Housing Markets? ›

Highlights. Manchester-Nashua, NH and Rochester, NY were tied as the country's hottest housing markets in February. The top 20 hottest markets are spread out across 11 states, with five metros in Ohio.

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.

Fannie Mae expects U.S. home prices to fall -1.2% between Q4 2022 and Q4 2023, and then another -2.2% between Q4 2023 and Q4 2024.

Las Vegas Housing Market Data - February 2023

Comparing to February of last year, this number is down 5.6% when the median home price was $450,000. There were 1,722 single family homes sold in February 2023, up from the number of homes sold in January by 30% and down 31.5% from February 2022.

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.

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.

Mortgage Bankers Association (MBA) chief economist and senior vice president of research Michael Fratantoni. “Our forecast is for a 30-year mortgage rate to be closer to about [5.5%] by the end of this year and drop a little lower next year.”

Mortgage rates are likely to decrease slightly in 2023, although they're highly unlikely to return to the rock-bottom levels of 2020 and 2021. However, rate volatility may continue for some time.

Along those lines, organizations like Fannie Mae and the Mortgage Bankers Association forecast that the average rate on 30-year fixed-rate mortgages will decline throughout 2023, continuing into the first quarter of 2024.

Is Las Vegas real estate overpriced? ›

The Las Vegas housing market is a great place for real estate investment. It remains relatively affordable than the expensive seller markets in the US.

In the city of Las Vegas proper, home prices peaked in June 2022, when Las Vegas's median sale price reached an all-time high of $434,000. Since then, prices have declined gradually, so that by March 2023 (the latest data available at the time of publication), Las Vegas's median sale price was down to $395,000.

Rents across the Las Vegas Valley decreased by 2.2 percent in the first quarter of 2023 compared to the same period last year, with the average rent now $1,430 a month, according to a report from the Nevada State Apartment Association, which represents rental housing owners in Nevada.

Nationally, the best time to sell a house is March if you're trying to sell quickly, while the best time to maximize profit is July. Zillow recommends listing your home for sale in March, but no later than Labor Day, based on historical market trends.

Seattle, San Jose, Austin and Phoenix are among the metros with the fastest-slowing housing markets as high mortgage rates, tech turmoil and the lack of homes for sale deter buyers.

The San Francisco Bay Area leads the nation with the largest drop in home prices. Softening home prices in some of the most expensive cities will benefit buyers.

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%.

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.

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.

The Bay Area has the worst performing housing market in the nation, according to a new report.

Will mortgage rates go down feb 2023? ›

Average 30-Year Fixed Rate

After hitting record-low territory in 2020 and 2021, mortgage rates climbed to a 14-year high in 2022. Many experts and industry authorities believe they will follow a downward trajectory in 2023. Whatever happens, interest rates are still below historical averages.

“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.

Mortgage experts see rates decreasing over the coming months as the economy slows. Lawrence Yun, the chief economist of the National Association of Realtors, said he expects rates to fall to 5.5 percent by mid-2023. Fannie Mae sees the average rate of a 30-year fixed getting to 6.8% in 2023.

The Mortgage Bankers Association predicts rates will fall to 5.5 percent by the end of 2023 as the economy weakens. The group revised its forecast upward a bit — it previously expected rates to fall to 5.3 percent. Meanwhile, Fannie Mae's Duncan expects rates to be in the “high 5s” by the end of 2023.

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.

Fannie Mae expects the 30-year fixed to ease to around 6.1% in the second quarter of 2023, before falling to 5.9% in the third quarter and 5.7% in Q4. And it gets even better than that. By the end of 2024, they expect the 30-year fixed to average 5.2%.

The US Federal Reserve will deliver a final 25-basis-point interest rate increase in May and then hold rates steady for the rest of 2023, according to a Reuters poll of economists. The poll also showed that a short and shallow US recession is likely this 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.

LAS VEGAS (KTNV) — A 'megamansion' located in the Henderson neighborhood of MacDonald Highlands is the most expensive house to rent or buy in the Las Vegas area, and one realty leader says this is only the beginning for ultra-luxury housing in the valley.

A respectable 38.8 million visitors came to Las Vegas in 2022. While that figure is 20.5% higher than 2021, it is still 8.7 million below the pre-pandemic levels of 42.5 million in 2019. Convention business continued to bounce back, with nearly 5 million attendees – up from 2.2 million in 2021.

Why Las Vegas house is so cheap? ›

Nevada has no income tax and among the lowest property taxes in the country. These money-saving factors combine to make Las Vegas homes more affordable.

The data provided suggests that the housing market is likely to remain fierce in 2023. It will have a high demand and rising home values. The Las Vegas real estate market currently favors both sellers and buyers. Since homes may sell quickly, buyers can negotiate better prices.

In general, because a balanced market includes from four to six months of supply depending on demand, Las Vegas could be described as a slight buyer's market. For just the month of January 2023 year-over-year, the supply of homes for sale rose by 3.25 months, or an increase of over 240%.

According to the Las Vegas Realtors, the current housing market appears to be balanced. “Buyers are actually in a better position now because prices have stabilized and in some cases have gone down more,” Lee Barrett, President of the Las Vegas Realtors explained.

This is equivalent of $1,137 a week or $4,929 a month. Most salaries in Las Vegas range between $41,821 (25th percentile) to $75,300 (75th percentile) annually. Of course, salaries will vary depending on your occupation, experience, and many other factors.

Las Vegas' total office vacancy rate shows an increase in the first quarter following five consecutive quarters of decreases. The direct vacancy rate increased from 12.2% in Q4 2022 to 13.0% in Q1 2023.

The lowest rental rates are usually found between October and April, particularly right after the December holiday season. Fewer people are interested in moving—the weather's bad, schools are in session, etc. So individuals renting between the months of December and March typically find the best rental bargains.

The Lowest Home Prices Are Typically in January

The rise in sales prices between the winter and spring months is drastic, making the winter months—December, January, and February—a much more optimal time for homebuyers to purchase properties.

Generally, home prices are lowest in January because demand is low, inventory is low and fewer buyers are looking for homes. While January might be the best month to get the lowest price on a home, you pick from a smaller selection of homes.

Buying A House In The Fall

Outside of winter, a fall purchase can be ideal for cash-strapped home buyers. Once summer ends, sellers get more motivated. They usually lower their prices and provide an opportunity to get a deal. As is the case with winter, there's also less inventory during the fall.

What city are home prices plunging in the US? ›

More On: housing

The largest decrease in home prices will occur in Austin, where values are projected to slump 19% by late 2024 compared to late 2022, according to the note. Prices are expected to sink in Phoenix by 16%, San Francisco by 15% and Seattle by 12%.

In four cities in particular, supply levels are above pre-pandemic levels, the bank said, which will result in greater price declines than the national average. They include: Phoenix, Arizona; San Francisco, California; Seattle, Washington; and Austin, Texas.

By the fourth quarter of 2024, the firm expects home prices to fall 19% in Austin, 16% in Phoenix, 15% in San Francisco, and 12% in Seattle.

In a recent note to clients, the strategists warned that by the end of 2024, home prices are set to plunge by 19% in Austin, 16% in Phoenix, 15% in San Francisco and 12% in Seattle. That's because those four cities have seen large increases in inventory, and supply is now overwhelming demand.

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.

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.

“Average home prices have declined but remain high relative to pre-pandemic levels affecting housing affordability,” said Alabama REALTORS® 2023 President RaJane Johnson.

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.

What are the real estate challenges in 2023? ›

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.

According to the CoreLogic HPI Forecast, home prices are projected to continue their upward trajectory. The forecast indicates an expected month-over-month increase of 0.8% from March 2023 to April 2023 and a year-over-year increase of 4.6% from March 2023 to March 2024.

The shortage of carpenters, masons and other skilled workers led to higher wages, which increase the bottom-line price of homes. And construction worker pay is rising much faster in Texas than in the nation as a whole.

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.

Due to its moderate climate and location in the country, housing, food, and most of the living expenses are some of the lowest in the United States. This southern state is one of the country's most affordable places to live.

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.

According to IBIS World, Alabama's GDP reached $206.9b in 2022. Alabama's economy is strong, with a low unemployment rate and a diverse range of industries. This can make it a good place to invest if you're looking for a property that will hold its value over the long term.

With mortgage rates declining faster than expected, home prices are likely to remain mostly flat throughout 2024. This will be good news for buyers who have been waiting on the sidelines for a good time to enter the market.

McBride expects rates to fall more consistently as the year progresses. "Thirty-year fixed mortgage rates will end the year near 5.25%," he predicts.