El Paso Ranked as One of the Top Real Estate Markets in 2023
Posted by John Peña on Thursday, February 2, 2023 at 3:52:03 PM
By John Peña / February 2, 2023
Comment
A Recent Study Says that El Paso Will Be One of the Best Housing Markets in the Nation
Midsize markets, which saw lower price increases and less of an affordability crunch than others, are poised to see the strongest combined growth in home sales and listing prices in the coming year, according to a report from Realtor.com.
With mortgage rates almost doubling since the beginning of the year and home prices continuing to increase due to low inventory, affordability remains a big concern for buyers.
“Because these midsize markets didn't really surge to new degrees during the pandemic, they are still relatively affordable,” Danielle Hale, chief economist for Realtor.com, told USA TODAY. “Nearly all have prices below the U.S median home price.”
Top markets include El Paso, Louisville
Topping the list are Hartford-West Hartford, Connecticut, followed by El Paso, Texas; Louisville, Kentucky; Worcester, Massachusetts; Buffalo-Cheektowaga, New York; Augusta, Georgia; Grand Rapids-City of Wyoming, Michigan; Columbia, South Carolina; Chattanooga, Tennessee; and Toledo, Ohio.
"These are the markets that have been relatively slow and steady, and that slow and steadiness is going to help keep the real estate markets relatively active in 2023 in these areas," Hale said.
Home sales across the top 10 markets are expected to grow by 5.2% year over year in 2023, whereas national home sales are projected to experience a decline in sales (-14.1%). Average home prices in these top 10 markets are expected to increase by 7.3% compared with 5.4% nationally.
In the top 10 markets, about 23% of housing inventory is affordable at the median income level, compared to just 17% of affordable homes nationally.
Many of these areas flew under the radar in the pandemic frenzy and are now well-positioned to bubble up with solid job prospects without the big-city price tag, Hale said.
“As many households keep a close watch on their spending, we expect these top housing markets to be in relatively high demand,” Hale said.
“We’ve seen lower price increases, more general affordability, and more use of government-backed mortgage products for veterans, first-time and minority buyers in these top markets, providing opportunities for all home buyers to stretch their homebuying dollars."
The only metro area on the list with a median home price above the U.S. median of $415,750 is Worcester, at $447,000.
Buyers in these housing markets more likely to take FHA and VA loans
Home sales in the top 10 metros also tend to leverage more government-backed mortgage products such as VA loans and FHA loans. Between January and August of this year, the share of mortgaged sales with a VA loan was 9.4% in the top 10 markets versus 7.5% among all the 100 markets reviewed. These types of loans help buyers safely enter the market with lower down payments and often slightly lower mortgage rates.
2023 top housing markets
1. Hartford-West Hartford, Connecticut
November 2022 median home price: $372,000
Forecasted 2023 home sales change: +6.5%
Forecasted 2023 home price change: +8.5%
Forecasted 2023 combined sales and price change: +15.0%
2. El Paso, Texas
November 2022 median home price: $291,000
Forecasted 2023 home sales change: +8.9%
Forecasted 2023 home price change: +5.4%
Forecasted 2023 combined sales and price change: +14.3%
3. Louisville, Kentucky
November 2022 median home price: $290,000
Forecasted 2023 home sales change: +5.2%
Forecasted 2023 home price change: +8.4%
Forecasted 2023 combined sales and price change: +13.6%
4. Worcester, Massachusetts
November 2022 median home price: $447,000
Forecasted 2023 home sales change: +2.5%
Forecasted 2023 home price change: +10.6%
Forecasted 2023 combined sales and price change: +13.1%
5. Buffalo-Cheektowaga, New York
November 2022 median home price: $240,000
Forecasted 2023 home sales change: +6.3%
Forecasted 2023 home price change: +6.0%
Forecasted 2023 combined sales and price change: +12.3%
6. Augusta-Richmond County, Georgia-South Carolina
November 2022 median home price: $319,000
Forecasted 2023 home sales change: +6.2%
Forecasted 2023 home price change: +5.7%
Forecasted 2023 combined sales and price change: +11.9%
7. Grand Rapids-City of Wyoming, Michigan
November 2022 median home price: $358,000
Forecasted 2023 home sales change: +1.6%
Forecasted 2023 home price change: +10.0%
Forecasted 2023 combined sales and price change: +11.6%
8. Columbia, South Carolina
November 2022 median home price: $300,000
Forecasted 2023 home sales change: +7.7%
Forecasted 2023 home price change: +3.6%
Forecasted 2023 combined sales and price change: +11.3%
9. Chattanooga, Tennessee-Georgia
November 2022 median home price: $397,000
Forecasted 2023 home sales change: +2.9%
Forecasted 2023 home price change: +8.2%
Forecasted 2023 combined sales and price change: +11.1%
10. Toledo, Ohio
November 2022 median home price: $161,000
Forecasted 2023 home sales change: +4.2%
Forecasted 2023 home price change: +6.7%
Forecasted 2023 combined sales and price change: +10.9%
Bottom Line
All in all, I think that the news is very positive for El Paso. At the same time, I believe that the 14.3% increase in combined sales and price change may be optimistic.
As always, please reach out to us with any questions.
Post a Comment