As the real estate market continues to evolve, it's important to stay up-to-date on the latest trends. With new technological advancements and changes in consumer preferences, the market is constantly transforming. Since 2023 has just begun, here's what you need to know about the real estate trends that will shape the industry over the next 12 months.
7 current real estate trends to watch this year
What real estate trends should you watch this year? To stay ahead of the curve, you should know that in 2023:
Home prices will continue to rise
Due to the increasing demand for single-family homes, the real estate market in the United States has expanded over the past few years.
Although the COVID-19 pandemic stopped the expansion for a moment, the situation didn't last long. It's estimated that the median home prices in the USA increased nearly by 15% in 2022. According to predictions, this real estate market trend will continue in 2023.
The Fed's increase in interest rates will change a buyer’s market
The Fed's increase in interest rates surely affects property prices. This step aims to reduce inflation. It makes it more expensive for borrowers to afford housing. The growth in home prices is likely to de-accelerate. That will give more purchasing power to those who can afford a more expensive mortgage making it into a buyer's market.
The demand will remain relatively high, which will make property prices creep up. The good news is that some properties that were unreachable for average buyers 2 years ago will become more affordable.
There may be fewer real estate investors
The traditional real estate investor has been a major driver of the market over the past few years. With their help, many markets have seen a surge in prices and a decrease in the number of available properties.
Because of large hedge funds and corporations buying real estate properties across the country, it’s likely to change. This year, it can be hard for investors to stay ahead of the curve.
Smart parkings will become even more important
Smart parkings are becoming increasingly popular for their convenience and safety. They feature automated systems that allow vehicles to park without any assistance.
In 2023, expect to see more smart parkings popping up in residential areas. This real estate trend is beneficial for both homeowners and renters looking for a secure and easy way to park their cars.
Remote work will impact the commercial real estate
The coronavirus pandemic forced many companies to switch to remote work. This trend is likely to stay here for a while. It'll have a significant impact on the commercial real estate market.
As more people choose to work from home, businesses will no longer need to rent large offices. Instead, expect to see a rise in coworking spaces and smaller office buildings.
The digital house buying and selling revolution will continue
As technology advances, more people are turning to digital solutions when it comes to buying and selling houses. When talking about real estate market trends, it’s important to mention that digital transactions will become more popular.
The process of virtual real estate transactions is becoming more efficient and transparent. This allows buyers and sellers to get the necessary information quicker.
Rental property markets will shrink in big cities
In the pandemic, many people decided to leave larger cities. Instead, they decided to rent apartments or houses in the suburbs.
Consequently, the rental property markets in metropolitan areas declined. With all probability, this trend is likely to continue in 2023. So, all real estate investors should consider buying rental properties in the suburbs.
You may also be interested in our other article: What Is Digital Real Estate?
The real estate market is always changing. That's why it's so important to stay up-to-date with the latest real estate trends. In 2023, expect to see rising home prices, fewer real estate investors, more smart parkings, a shift in the commercial real estate market, and a digital house buying and selling revolution. Apart from that, the rental property markets in big cities are likely to continue to shrink.
Monitoring the real estate market trends can help you make informed decisions and maximize your investments.