3 Housing Market Predictions for 2023
The housing market is always in a state of flux. Prices rise, the market plummets, and then it picks up again – but all done within years rather than decades, making for almost constant turnover. We can look forward to some trends throughout 2018; here are three predictions for 2023 with the potential impact on your real estate portfolio.
According to Jordan Sudberg, we can anticipate that; “Rent will be sky high in the next few years, so it is important to get this right when investing. It is not too late to start buying rental properties.”It may seem like an obvious statement based on the current market conditions, but the fact is that tenants have to pay Rent in most cities, and they will not accept an offer below market rates. This is especially true when multiple places are available on your desired street.
As two-bedroom apartments are now the norm in the cities that have migrated to a more urbanized model, it isn’t easy to find anything under 2000 square feet. Landlords can double the Rent by adding an extra 100 square feet and pocketing the difference. The fact is that tenants will not accept a lower offer, so there has to be something about your property that makes the buyer feel protected or confident enough to make an offer.
The Top 3 Housing Market Prediction For 2023 2
1.Rent will be sky-high in the next few years
So it is important to get this right when investing. There is still time to start buying rental properties.
According to Jordan Sudberg, the second prediction for 2023 is that “mortgage rates will continue to rise.” This trend has been relatively consistent over the past few years, and while there have been some fluctuations, they have not impacted the overall trajectory significantly.
2. Mortgage Rates will continue to rise
This prediction could be challenging to believe if you live in a traditionally low-interest rate market. Mortgage rates have risen dramatically in the past few years, and many people have taken advantage of these low rates with purchases they would not have otherwise been able to afford. This trend will likely continue, so it is important to note before you are trapped by high-interest rates later on.
3. Home prices will not rise as fast as they have in the past
This prediction is based on the fact that home prices have risen at a much faster rate in the past than they have in previous years. Many people are living beyond their means, which is beginning to affect the market.
As the housing market continues to shift, you must monitor your investments and keep an eye on the surrounding area where the rental market is heating up. Renting may be an excellent option for smaller investors, but if you are looking at significant purchase rates. The Low Cost of Renting: A continuing trend: over the past decade, renting has consistently been lower than buying a house. This continues to be an essential factor in the decision to rent or buy and will continue to play a significant part in the various housing markets worldwide.