At this point, it is time to say goodbye to COVID boomtowns and hello to mid-sized markets! We all saw it; the sharp downtrend in housing markets this year. However, as the year is gradually drawing to an end, what are the hopes for next year – 2023?
In this year, midsize markets saw lower price increases and less of an affordability crunch than others; it is poised that the midsize markets will do well in 2020, according to a report from Realtor.com. The shambles in the market this year was a result of high mortgage rates – rates almost doubled from what we saw at the beginning of the year, so not many people were able to afford home purchases.
Chief economist for Realtor.com, Danielle Hale, told USA Today that “Because these midsize markets didn’t really surge to new degrees during the pandemic, they are still relatively affordable. Nearly all of them have prices below the U.S median home price.”
Midsize markets are believed to be the better investment for 2023, and hereunder are some of the housing markets to consider.
Top Housing Markets for 2023
1. El Paso, Texas
November 2022 median home price: $291,000
Forecasted 2023 home sales change: +8.9%
Forecasted 2023 home price change: +5.4%
Forecasted 2023 combined sales and price change: +14.3%
2. Hartford-West Hartford, Connecticut
November 2022 median home price: $372,000
Forecasted 2023 home sales change: +6.5%
Forecasted 2023 home price change: +8.5%
Forecasted 2023 combined sales and price change: +15.0%
3. Buffalo-Cheektowaga, New York
November 2022 median home price: $240,000
Forecasted 2023 home sales change: +6.3%
Forecasted 2023 home price change: +6.0%
Forecasted 2023 combined sales and price change: +12.3%
4. Worcester, Massachusetts
November 2022 median home price: $447,000
Forecasted 2023 home sales change: +2.5%
Forecasted 2023 home price change: +10.6%
Forecasted 2023 combined sales and price change: +13.1%
5. Louisville, Kentucky
November 2022 median home price: $290,000
Forecasted 2023 home sales change: +5.2%
Forecasted 2023 home price change: +8.4%
Forecasted 2023 combined sales and price change: +13.6%
6. Augusta, Georgia-South Carolina
November 2022 median home price: $319,000
Forecasted 2023 home sales change: +6.2%
Forecasted 2023 home price change: +5.7%
Forecasted 2023 combined sales and price change: +11.9%
7. Chattanooga, Tennessee-Georgia
November 2022 median home price: $397,000
Forecasted 2023 home sales change: +2.9%
Forecasted 2023 home price change: +8.2%
Forecasted 2023 combined sales and price change: +11.1%
8. Grand Rapids-City of Wyoming, Michigan
November 2022 median home price: $358,000
Forecasted 2023 home sales change: +1.6%
Forecasted 2023 home price change: +10.0%
Forecasted 2023 combined sales and price change: +11.6%
9. Toledo, Ohio
November 2022 median home price: $161,000
Forecasted 2023 home sales change: +4.2%
Forecasted 2023 home price change: +6.7%
Forecasted 2023 combined sales and price change: +10.9%
10. Columbia, South Carolina
November 2022 median home price: $300,000
Forecasted 2023 home sales change: +7.7%
Forecasted 2023 home price change: +3.6%
Forecasted 2023 combined sales and price change: +11.3%
Midsize Housing Markets Supported by Domestic Industry
According to USA Today, the shift from remote work and tech-industry-influenced homebuying contributed to a renewed focus on domestic industry and trade for the projected 2023 top markets.
About midsize marketing being the top choice for 2023 house market investment, on average, these midsize metros employ a higher proportion of workers across industries (manufacturing, government, education, and health care, relative to the 100 largest U.S. metro areas), while tech jobs, professional services, information technology, and leisure and hospitality are less common in these areas.
Furthermore, having largely avoided the pandemic housing boom seen in other markets, homebuyers in the top markets can find solid job prospects and affordable housing options. Hence, these housing markets are most likely the best to bank on in 2023.
News Source: USA Today.
