2023 Real Estate forecast, is it doom and gloom or an UPSIDE!

Residential real estate prices increased by 8.6% annually but decreased by 0.2% monthly. CoreLogic predicts home prices will be lower in the second quarter of this year compared to the same period last year. Home prices have dropped 2.5% since their peak in the spring of 2022 and are expected to continue falling.With exception of the Southeast!

It has also been my experience that the 55 and older communities are still holding strong in value. We saw a slight decrease in the sales price during the holidays and that’s historically normal. It continues to be my opinion that the majority of these communities will continue to appreciate in value this year with an estimated 4.2% by years end. We will experience a great deal of sales activity beginning the third week in January 2023 as the holidays are over and serious retires are fed up with the Winter Cold and Snow! Expect to see an increase in buyer activity through April in this Market.

We see a great deal of misleading information claiming values are declining or decreasing. In fact, many homes are being listed higher than market value and the experienced consumers do their homework and sees it and will not view these properties until the prices are inline with values in their respected areas. Thus the longer the property is on the market the less likely it will receive offers. Common rule of thumb, the longer the property is on the market it raises red flags to whether something is wrong with it. With this said, communities not impacted by the baby boomer influx will be more incline to experience CoreLogic predictions.

CoreLogic, is a company that keeps tabs on home prices across the country, and predicts that prices will begin falling year over year beginning in the second quarter, with a possible uptick by year’s end. I believe this analysis is reasonable to believe outside the 55 and older market place.

Even though home price growth has been slowing rapidly and will continue to do so in 2023, strong gains in the first half of last year suggest that total 2022 appreciation was only slightly lower than that recorded in 2021, according to Selma Hepp, deputy chief economist for CoreLogic.Consumers’ skepticism of the housing market and the economy as a whole means that “2023 will present its own challenges.”

While home prices dropped by 0.2% from October to November, they increased by 8.6% from November 2017 to November 2018. A 21-month run of double-digit growth has come to an end, with this year’s increase being the lowest in the last two years.

CoreLogic reports.The firm expects prices will rebound toward the end of the year and increase 2.8 percent compared to where they were in November 2022. CoreLogic noted that there are still markets showing annual price increases in the double digits.
Meanwhile, declines were even steeper in some other Sun Belt markets.

In terms of annual growth, home prices in Florida (18%), South Carolina (13.9%), and Georgia (11%) have all been the best performers through November (13.6 percent).

The most popular areas in Florida, data collected by Forbes!

You would more than likely believe Florida’s main go to metro areas, Miami, Orlando and Tampa — the hottest areas in the state — would make the Top 3 go to areas in Florida. However, this was only the case for one of the cities mentioned. Forbes based the order on various factors, such as population, median home price, estimated monthly expenses, median income, unemployment rate, community wellness score and criminal offenses reported.

Tampa, Florida, has topped the list and taken first place. The city is close to both Orlando and Miami, and it has some of the most beautiful beaches on the West Coast.There are many young families in the area, making it the ideal balance between the city center and the suburbs.Tampa has a median home price of $437,000.

Next up is Jacksonville at number two, followed by Gainesville at number three, Cape Coral at number four, and finally Orlando at number five. Forbes calls Orlando “more than just a destination for tourists and work conferences,” but the city is much more than that.This city has a higher unemployment rate (2.9%) and number of reported crimes (13,682) than those ranked higher, but the research doesn’t specify why it’s not a top 3 pick.

In the top ten, Miami comes in at number six.Even though Forbes lists it as one of the most populous American cities, not everyone is happy to call it home. During the summer, temperatures can soar to dangerous levels, and housing costs can skyrocket.
In Miami, a house costs a median of $617,000.

Melbourne (No. 7), Sarasota (No. 8), Tallahassee (No. 9), and Pensacola (No. 10) round out the Top 10 cities (No. 10).

Although Hepp deputy chief economist for CoreLogic.believes the recent drop in mortgage rates is good news for the housing market, he acknowledges that potential buyers are still struggling with the idea of buying in light of the possibility of further price declines and a continuing inventory shortage. Still, 2023 may prove to be a year of housing market resilience thanks to rising affordability and a brighter economic outlook than was previously anticipated.