2023 housing market: Get ready for higher prices

According to a recent study, about 28 million buyers are looking to buy a home for about $100,000 less than the U.S. median home price.
Some respondents said a sour economic climate could prevent them from making a purchase in 2023.

Felicia Jenner, 34, was looking for a $200,000 home in North Denver for herself and her one-year-old daughter to move into in November 2022.

However, the median home price in the state is $530,000 for single-family homes and $500,000 for multi-family homes.
15,000 for condos and apartments. According to the Townhomes Colorado Association of Realtors, Jenner told Insider that her home search was frustrating at best.

Jenner is one of about 28 million Americans, or about 11% of the population, who expect to own a home in 2023. According to NerdWallet’s latest home buying survey of 2,051 American adults online, January 1–5, Harris Poll Like many in the cohort, Jenner’s home-buying budget isn’t enough to get the job done, as high mortgage rates and low housing inventory continue to keep buyers out of the market.

“I was tired of wasting rent money and wanted to see what I could get, but it wasn’t promising,” Jenner told Insider. “I want to provide a safe place for my daughter, but everything I saw was immediate, not because of the location.” It made me consider leaving Colorado altogether.

Americans planning to buy a home in 2023 expect to spend about $269,000 on average, with a median cost of about $200,000, according to NerdWallet research. That compares to a national median home price of $366,000 in December 2022, according to the National Association of Realtors.

home buyer

For NerdWallet spokeswoman Elizabeth Renter, these survey results indicate that many homebuyers could be in for a rude awakening in 2023. They will likely need to revise their budget before making an offer. said 
“There are probably a lot of people who will be very disappointed when it comes time to look at apartment prices,” said the tenant. “They really limit the places they can buy on such a tight budget.” Realtor.com’s 
Experts recently compiled a list of 10 markets where the average homebuyer could have a chance to own a home in 2023. The list includes places like Hartford, Connecticut, and El Paso, Texas, which many people overlooked during the pandemic-induced housing boom from March 2020 to the summer of 2022. However, 
Renter said many homebuyers are still struggling to make ends meet. planning to buy an apartment. About 28 percent of those surveyed by NerdWallet said the sour economy is preventing them from continuing to own a home, compared to 20 percent who made similar comments in the previous two-year surveys.
And Insider’s James Rodriguez writes that the outlook for first-time buyers has never been bleaker, as rising house prices and high mortgage rates mean first-time buyers are older, more likely to live with their parents, and have to wait longer. get a house
Jenner admitted that she is lucky to live close to her parents, which helps her save on childcare costs. She said it was difficult to balance the nearly $1,900-a-month rent in Colorado with the opportunity to own a home in another state with a lower cost of living, especially since she was considering moving to a new state that she could afford.
“I hope the market will turn in my favour in the coming months,” Jenner said. “Otherwise, I might have to re-rent.”

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