The Latest Updates in the US Housing Market
Current US housing market trends are changing slightly and the latest updates for 2023 are here. According to analysts, home sales are down, and the median price of existing homes is expected to drop by 1.7% this year. This was an expected adjustment given the state of the market over the past 2 years. New building permits are at an 8-year high, giving some hope that new construction will eventually help balance things out in the long run. In order to get the best value when buying, selling or investing it’s crucial to have an expert City of Westlake real estate agent by your side.
Current Housing Market Trends 2023
Developing housing market trends in the US indicate the falling median price of existing homes. The average household income needs to catch up with rising home prices, resulting in a continued decline in purchasing power. Several reasons for this include:
An aging population
Increased retirement-related expenses
Increased taxes
Sharply rising energy costs
The upcoming trends below will affect the current housing market conditions in the US:
1. House Hunting Goes Digital
The housing market trends indicate that more home buyers are turning to the Internet for their research. They’re hunting for homes online and sellers of homes by searching real estate listings websites. In response, Realtors have come up with their own set of Internet tools to show off a home’s best features, including virtual tours and interactive maps. Potential buyers can also use these tools to prepare for home buying, such as managing a budget and calculating loan payments. You can browse models, floorplans and schedule a tour right here on the Santana Real Estate website.
2. People Move From Cities To The Suburbs
With recent housing trends indicating that Americans are still moving out of cities to the suburbs, there’s a good chance that housing will become less expensive in urban areas. This doesn’t mean that you need to go off the grid and live in the sticks–this change will only take place over time.
Population growth in the suburbs is a common trend depending on necessity and choice. To accommodate this, new infrastructures and homes must be built, which can be in the form of apartments (multifamily) or single-family homes, available as townhouses, modular homes, or site-built homes. The City of Westlake is an ideal suburb for those looking to maximize their home value in a brand new and growing community.
3. Single-Family Housing Demand Creates Shortages
With the increase in the demand for single-family housing, new home builders are experiencing higher costs compared to existing homes. The result is that there will be a need for more single-family homes that can be sold at reasonable prices.
The impact on the housing market depends on the demand and supply. Since single-family homes are expensive compared to multifamily dwellings, the price of new single-family homes will increase if the supply is limited. If there’s a shortage of single-family homes, rent or purchase prices for a new single-family home will be higher. This is just another reason why now is the perfect time to build in the City of Westlake.
4. Affordability Always Grips Home Buyers
The housing market needs to balance affordability, quality, and location to satisfy home buyers always looking for a house that meets their needs within their budgets. The housing market needs affordable homes for lower-middle and low-income families who want to live in urban areas or suburbs. But, even with extensive research to find suitable homes, buyers, and sellers must still come up with the right amount of money for the home they want.
Several different factors could lead to higher home costs. The continued increases in real estate taxes – especially when local governments consider the impact of new construction on property taxes – can increase the cost of a new home. In addition, the demand for new construction will increase the prices of single-family homes, causing higher prices for existing homes. Other factors that could raise home prices include increasing mortgage interest rates, building costs, and rising labor costs. The experts at Santana Real Estate can help you navigate all market trends and ensure you get the best deal in the City of Westlake. Contact us today for more information.