On the market for a new home? You’re not alone, but now might not be the time to invest. However, you might be in luck if you’re selling a home.
Zillow, one of the top platforms for buying and selling property, just released its value and sales forecast for March 2023. One major prediction: a decline in total sales, around 4.3 million as opposed to last year’s 5 million.
Why the 2023 housing market is fluctuating this quarter
Last year, Zillow recognized a sharp downturn in home values. After some time moving downhill, this team believes we’re on our way to a slightly more optimistic market for sellers. Why?
Recent changes in home values in many major markets and cities have the real estate platform crunching the numbers and rethinking the data in front of them. Some believe we’re finally emerging from the black hole of the pandemic and that demand for new real estate is bouncing back to pre-COVID levels of activity.
Others think higher mortgage rates could have the opposite effect, lowering demand in some of the more expensive parts of the country. California seems to be one of the states suffering the most in lost home value over the next 12 months, with dozens of counties and cities included in this slight downturn.
The effect isn’t global, however. Zillow analyzed the top 400 markets in the industry, and just over half are expected to follow this economic trend — 238, to be exact. Some may surprise you, with dark horses like the following becoming just a bit more valuable than before:
- Morristown, Tennessee (+5.1%).
- Rome, Georgia (+4.8%).
- Knoxville, Tennessee (+4.5%).
- Johnson, Tennessee (+4.5%).
- Atlantic City, Georgia (+4.2%).
Not everybody agrees with these figures, especially with last year’s particularly dismal market forecast looming just behind us. Whatever the cause, the news excites those who held onto their real estate through this tumultuous period.