Most experts agree that the housing market will continue to adjust this year as mortgage rates remain high — but that doesn’t necessarily mean lower prices and less competition are coming to every city in the U.S.
Atlanta looks to be the housing market in the U.S. with the most potential for growth in the new year, according to researchers at the National Association of REALTORS®.
The city, dubbed the “New York of the South,” rose to the top of NAR’s list of markets to watch in 2023 for three main reasons: Atlanta has greater housing affordability than comparable cities, its population is growing more rapidly and 20% of renters there can afford to buy a median-priced home—higher than the national average—the NAR report notes.
Atlanta also boasts a robust and growing job market, where many major technology companies, such as Apple, Microsoft and Visa, are relocating from the West Coast.
These are the top 10 housing markets that the National Association of Realtors (NAR) expects to outperform other cities in 2023:
Notice a trend? They are all located in the South!
Southern cities attracted lots of new transplants during the pandemic as homebuyers sought out more space and lower living costs. Atlanta, which took the top spot, was also ranked first on Money’s 2022 list of the Best Places to Live, where they highlighted its booming jobs market, diverse population and world-class cultural attractions.
For those who don't have time to watch, here are the key points...
"The demand for housing continues to outpace supply," NAR Chief Economist Lawrence Yun said in a news release. "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."
On a national level, Yun said he expects home prices to rise just 0.3% to $385,000 next year, compared to a 9.6% gain over the course of this year.
Some experts expect more growth: In her 2023 housing market forecast, Realtor.com Chief Economist Danielle Hale predicted a 5.4% bump in home prices next year.
With all the conflicting information circling in the media it can be difficult to decipher fact from fiction when it comes to the real estate market. An important thing to keep in mind is that real estate is local. Contact our team for a more detailed analysis of what's happening in our Atlanta communities.
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