Lofty home prices,
"Americans left pricey coastal job centers and moved to more affordable places in the Sun Belt, but now those more affordable places are seeing affordability erode faster than anywhere else in the country," said Taylor Marr, deputy chief economist at Redfin, in a recent report.
Mortgage rates
"What they're looking for is to have a bigger home, for example or to buy a home instead of renting, and this is usually related to affordability," said Nadia Evangelou, senior economist with the National Association of Realtors.
Areas with strong local economies and large millennial populations — the nation's largest homebuying demographic cohort — are also big indicators of hot markets, Evangelou said. Days on market remains a solid indicator of desirability, added Greg Schwartz, co-founder and CEO of fintech lender Tomo Networks. The experts suggested Sun Belt destinations like Atlanta, and cities in Florida and Texas remain popular and will be entering the traditional homebuying season strong.
Others still predict a demand shift back to big cities, where residents fled in droves to escape dense and expensive living during the pandemic. Shant Banosian, the number one-ranked loan officer at Guaranteed Rate who closed over 4,000 units last year, said he expects the shift to occur over the next 12 to 24 months, and interest in big coastal markets to revive.
"The opportunities to purchase, the acquisition costs in cities are more favorable," he said. "And on top of that, there's much more inventory available."
National Mortgage News gathered insight from real estate professionals and housing market reports to determine some of the markets homebuyers will look to in 2023. Home price and migration data was gathered from Redfin.
Charlotte, North Carolina
Percentage of homebuyers nationwide looking to move in: 0.97%
Most popular inbound origins: New York, Washington, D.C., Los Angeles, California
Dallas, Texas
Percentage of nationwide homebuyers looking into Dallas: 3%
Most popular inbound origins: Los Angeles, San Francisco, New York
Jacksonville, Florida
Percentage of nationwide homebuyers looking into Jacksonville: 0.79%
Most popular inbound origins: Washington, D.C., New York, Orlando
Las Vegas, Nevada
Percentage of nationwide homebuyers looking into Las Vegas: 2%
Most popular inbound origins: Los Angeles, Salt Lake City, San Francisco
Miami, Florida
Percentage of nationwide homebuyers looking into Miami: 3%
Most popular inbound origins: New York, Washington, D.C., Boston
Memphis, Tennessee
Percentage of nationwide homebuyers looking into Memphis: 0.24%
Most popular inbound origins: Los Angeles, San Francisco, Atlanta
Myrtle Beach, South Carolina
Percentage of nationwide homebuyers looking into Myrtle Beach: 0.70%
Most popular inbound origins: Washington, D.C., New York, Charlotte
Phoenix, Arizona
Percentage of nationwide homebuyers looking into Phoenix: 3%
Most popular inbound origins: Los Angeles, Seattle, Tucson, Arizona
Portland, Maine
Percentage of nationwide homebuyers looking into Portland: 0.78%
Most popular inbound origins: Boston, New York, Washington, D.C.
Sacramento, California
Percentage of nationwide homebuyers looking into Sacramento: 3%
Most popular inbound origins: San Francisco, Los Angeles, Chicago