The National Association of Realtors predicts that in 2023, 4.78 million existing homes will be sold, prices will remain stable, and Atlanta will be the top real estate market to watch. The forecast was made by Lawrence Yun, NAR chief economist and senior vice president of research, who unveiled the association’s forecast during their annual year-end Real Estate Forecast Summit.
Among the forecasts in Yun’s crystal ball:
- Home sales will decline by 6.8% compared to 2022 (5.13 million) and the median home price will reach $385,800 – an increase of just 0.3% from this year ($384,500).
- Rent prices will rise 5% in 2023, following a 7% increase in 2022.
- Foreclosure rates will remain at historically low levels in 2023, comprising less than 1% of all mortgages.
- U.S. GDP will grow by 1.3%, roughly half the typical historical pace of 2.5%. After eclipsing 7% in late 2022, he expects the 30-year fixed mortgage rate to settle at 5.7% as the Fed slows the pace of rate hikes to control inflation.
“The demand for housing continues to outpace supply…The economic conditions in place in the top 10 U.S. markets, all of which are located in the South, provide the support for home prices to climb by at least 5% in 2023.” Said Lawrence Yun, the NAR’s chief economist and senior vice president of research.
In addition, the NAR identified the top 10 real estate markets that it expects to outperform other metro areas in 2023:
- Atlanta-Sandy Springs-Marietta, Georgia
- Raleigh, North Carolina
- Dallas-Fort Worth-Arlington, Texas
- Fayetteville-Springdale-Rogers, Arkansas-Missouri
- Greenville-Anderson-Mauldin, South Carolina
- Charleston-North Charleston, South Carolina
- Huntsville, Alabama
- Jacksonville, Florida
- San Antonio-New Braunfels, Texas
- Knoxville, Tennessee