Will your home values rise or fall in 2023? Analysts are all over the board with what to expect next year. It seems that where you live has more to do with rising and falling home prices than economic forces. Expect hyperlocal markets to influence home values more than general economics.
A recent article in Fortune regarding the housing market has an interactive map that shows areas at the highest risk of “home price correction.”
The map, created by CoreLogic, and published in the Fortune article, assessed many factors in assessing the nation’s largest regional housing markets. They then put the data into five categories based on the predictability of prices dropping, rising, or remaining steady. Here are the groupings from the real estate research for October 2022 through October 2023 analysis.
The red areas above have over a 70% chance of seeing a price dip in the next 12 months.
The pink areas have a 50%-70% chance of seeing price corrections.
The purple area (which includes the Greater Hilton Head area) has a 40% to 50% chance for price drops.
And the turquoise areas have a low chance of price drops (20% to 40%).
Of note, no areas are indicated a very low change meaning all areas may experience at least minimum correction from the record-breaking high-value market seen n the spring of 2022.
Remember that many factors influence the current market values and pricing, and things change quickly. The housing market will take a different trajectory than the stock market because influences take more time to affect the market one way or the other. Outside influences that most affect the market are spikes in mortgage rates and declines in existing and new home sales.
The best advice if you are in the market to sell your home right now is to give yourself time to sell. Most markets are balancing a bit more, which means your home may be on the market a little longer than it would have been six months ago. Remember that prices today are not the same as prices in the spring, so listen to your agent regarding pricing strategies. Overpricing based on what was and not on what is will cost you more valuable time on the market.