do-you-want-to-buy-your-house-in-the-us-in-2023?-zillow-leaves-its-predictions-for-next-year

With

just around the corner, Zillow has released its forecasts for homebuyers. And after a year that became difficult to buy a house, the best thing is to know how the market will come to increase the possibilities of brand new housing.

“Affordability will be the most important factor in housing for
, but there is room for optimism on that front if mortgage rates decline,” said Skylar Olsen, chief economist at Zillow. “Americans finding ways to make payments on a roof over their heads will drive the market forward next year. Where costs are lower, we will see healthier levels of sales and inventory. If the rent is less expensive than a new mortgage, we will be seeing a greater demand for rentals, something that builders and owners understand.”

The 5 points that will mark the housing trend in

, according to Zillow:

1. The Midwest market will be very active

Prices in most Midwest metropolitan areas have not risen as much as in most other regions of the country. Mortgages maintain reasonable prices compared to income in Missouri, Kansas, Iowa, Ohio and smaller metropolitan areas in Illinois, allowing first-time homebuyers to take the plunge. Additionally, this area has homes available to choose from, which is another key component of a healthy market.

two. More friends and family will pool their money to buy a home

As more millennials and Gen Zers enter what will remain a historically expensive market in 2023, more people are turning to pooling their money to buy a home. Property chasers are turning to unconventional means to do so financially, and this should increase by

. Zillow notes that of potential homebuyers, 11% intended to buy with a friend or family member in the next 28 months.

3. Affordability Crisis Will Stabilize

For

Zillow anticipates the market should stabilize, making it possible for households to budget and plan for housing decisions ahead in the months and years ahead. Mortgage rates are seeing recent, encouraging progress to the downside, as inflation and a tight labor market show some small signs of relief. On the other hand, rents fell during the month of October, for the first time in two years, indicating a return to regular seasonal patterns.

4. The strength of the construction will be in the rents

The large number of houses currently under construction after the rise of the pandemic (still a 50% more from February 2019) will mean continuous deliveries to the market. The temporary glut of available new homes will drive price reductions for new construction. On the other hand, multi-family unit builders are much more optimistic, which will encourage more rental construction, as many prospective homeowners will need to continue renting later in life if they are currently unable to qualify and move forward with the development. purchase of his own house.

5. New Homeowners Buying Expected to Increase

Record Low Mortgage Rates of 2019 and 2019 allowed the leverage of a lifetime, so homeowners can invest in a second home. 28% of shoppers surveyed by Zillow in 2019 said the opportunity renting out their entire house was an important reason to buy it, compared to 28% in 2019 and at 28% in 2021. Regular income potential, bearish expectations for stock markets in

, and large pullback from homebuyers due to higher mortgage rates may reinforce the incentive to keep those investment properties, especially when rental income at the moment is particularly high.

You may also be interested in:

– What are the affordable areas in the US that Americans want to move to to save, Redfin

– Home prices fall in cities that had thriving markets during the pandemic: Redfin

– If you are buying a home in the US, what day of the week can you expect to make up to $12 thousand dollars discount

By Scribe