Just under 4.8 million homes are expected to be sold within the calendar year of 2023, providing evidence of a buoyant market, according to new statistics released by the National Association of Realtors.
During a recent annual summit held by the group, it was also predicted that the nation’s median home price will come in at $385,800, slightly up over this year’s $384,800 average.
In addition, Lawrence Yun, NAR chief economist and senior vice president of research, forecasts a bifurcated nation, with one half enduring small increases in prices, while the other half “may see slight price decreases.”
More specifically, Yun points to the booming California market, and in particular San Francisco, where the average price of a home this year passed the $1.3 million mark. That market, he says, is “likely to register price drops of 10% to 15%.”
The rental market may also experience a cooling off—at least to a degree. The economist, noting that rents have gone up by 7% this year, expects a smaller 5% increase in 2023.
Part of an annual ritual, NAR also released a list of the top ten real estate markets to watch in 2023, a list that this year includes no cities located in the West. Instead, all the expected booming markets are located in metro areas in the South, with the growing Southeast cities of Raleigh, Atlanta, Charleston, and Greenville particularly well positioned.
Factors contributing to a city being placed on the NAR’s top ten list include strong job and population growth; greater numbers of renters who can afford to buy a median-priced home; faster growth of active housing inventory; and smaller housing shortages.
By Garry Boulard
