Housing market trends

As we finish the rest of 2023, the housing market shows no signs of slowing down. Despite the challenges posed by the ongoing pandemic, the market remains strong and competitive, with many experts predicting continued growth and increased demand for real estate. In this article, we will explore some of the key trends that are likely to shape the housing market in the rest of 2023.

1. Rising Home Prices

One of the biggest trends that we are likely to see in the housing market in 2023 is rising home prices. Over the past few years, home prices have been steadily increasing due to a variety of factors, including low inventory, high demand, and low interest rates. In 2022, the national median home price reached an all-time high, and many experts predict that prices will continue to rise in 2023, albeit at a slower pace. This means that homebuyers may need to be prepared to pay a premium for their dream home, and may need to act quickly when they find a property that meets their needs.

2. Continued Inventory Shortage

Another trend that is likely to continue in 2023 is the inventory shortage. Despite the high demand for homes, there are simply not enough properties available to meet the needs of buyers. This is due in part to the fact that many homeowners are choosing to stay in their homes longer, and are not putting their homes on the market as frequently as they used to. Additionally, new construction has been slow, due in part to supply chain issues and labor shortages. As a result, buyers may need to be patient and persistent in their search for a home, and may need to consider alternative options such as new construction or homes that need some work.

3. Increased Demand for Suburban and Rural Properties

As remote work and virtual schooling have become more common, many people are reevaluating their living situations and considering a move to suburban or rural areas. In 2023, we are likely to see increased demand for properties in these areas, as buyers seek more space and a quieter lifestyle. This trend is likely to continue even as the pandemic recedes, as many people have discovered the benefits of living in less congested areas.

4. Focus on Energy Efficiency

As climate change continues to be a major concern, many buyers are looking for homes that are energy-efficient and environmentally friendly. In 2023, we are likely to see an increased focus on energy efficiency in home construction and renovation. This may include features such as solar panels, energy-efficient appliances, and smart home technology that can help homeowners reduce their energy usage and save money on utility bills.

5. Digital Transformation of the Real Estate Industry

Finally, we are likely to see continued digital transformation of the real estate industry in 2023. This trend has been accelerated by the pandemic, as buyers and sellers have increasingly relied on virtual tools to search for and view properties. In the coming year, we are likely to see even more innovation in this area, including virtual reality tours, online bidding platforms, and digital closing processes. These tools can help streamline the home buying process and make it more convenient for both buyers and sellers.

Conclusion

The housing market in the rest of 2023 is likely to be characterized by rising home prices, a continued inventory shortage, increased demand for suburban and rural properties, a focus on energy efficiency, and continued digital transformation of the real estate industry. 

Rugare Madzara

Guest and Tanner Real Estate (Pvt) LTD