Its a place to connect with a local agent, explore financing solutions, schedule home tours, understand your buying and selling power, and more. Homes, January 2023 Top 20 Hottest Housing Markets. Between August 2022 and August 2023, CoreLogic predicts national home prices are poised to rise another 3.2%.That said, CoreLogic's forecast model estimates a huge swath of the country is at risk . Incomes, mortgage rates, and home pricesthe three major components that determine whether housing is affordablemay feel like the three fates for home shoppers. In December of 2021, rates hovered around 3 percent. Specifically, rental demand may be stronger in urban areas within big metros, a departure from both recent trends and what is expected in the for-sale market. Instead, home shoppers will enjoy advantages such as a growing number of homes for sale, but costs will remain high, challenging affordability at a time when overall budgets continue to be squeezed. have been more active in the housing market in recent periods, seeing greater growth in home purchases than their counterparts. In the second quarter, the value of owner-occupied household real estate was a record-high $41.2 trillion or an average $489,185 for each of the 84.2 million households who own their primary homes. Comparing the number of views a listed home gets is one indicator of how much demand exceeds supply, and by this measure, 2022 has lagged behind 2020 and 2021 while faring better than 2018 and 2019 across most of the home price spectrum. On the demand side, properties in the metro garnered 70.0% more viewers than the typical US property. $949,000 Last Sold Price. In this page not only will you see properties represented by , but also properties represented by other members of Hawaii Information Service. Realtor.coms Market Hotness rankings take into account two aspects of the housing market: 1) market demand, as measured by unique views per property on Realtor.com, and 2) the pace of the market as measured by the number of days a listing remains active on Realtor.com. January is the sixth month in a row that the average hottest markets price growth climbed beyond US price growth, which has been falling since June. Ohio boasts 5 markets on this months list, while Wisconsin is represented by 3, and Illinois by 2. The Northeast hottest markets included three locales from Massachusetts and one each from Pennsylvania, Rhode Island, New York and New Hampshire. And, a very good bet! , a moderation in home price growth will not be enough for the housing market to be a buyers bonanza. In January 2023 in Kailua Kona, HI there were 1.7% more homes for sale than in December 2022. Please be nice. This information has been supplied by third parties and has not been independently verified by Hawaii Information Service and is, therefore, not guaranteed. Affordable Midwest metros held 12 spots on this months list, the most spots in a single month for the region in the datas history. On the supply side, the five most-improved large markets saw inventory spend 62 days on the market, roughly the same as last year and an average of 13 days faster than the typical US home. Learn more about the Zillow Home Value Index, (Metric availability is based on market coverage and data). The Northeast held 7 spots on Januarys list, including several markets that are home to zips from the 2022 Hottest Zip Codes list. However, mortgage rates are a major factor in the calculus of housing affordability, and lower than expected rates are a positive risk factor. For renters ready to think about whether it makes sense to buy, considering the housing market and rental trends over the next year is important. However, the key question that will point to the answer that makes the most sense is how long you plan to live in your next home. 647 Sq. Our forecast predicts total inventory to grow by 4.0% in 2022 overall, and by 22.8% in 2023. This will reduce the price premium on homes in some of the highest cost areas and give a boost to prices on homes in lower-cost markets, flattening the difference between them after several years of moving in the opposite direction. The average listing price for the 20 hottest markets rose slightly compared to last month due to the inclusion of Boston on this months list, which is priced more than $200,000 higher than the next most expensive market. Your Email address will be kept private, this form is secure and we never spam you. Simply put, were notbuilding enough homes or multi-family units. of Maui and should not be relied upon without independent verification. The lowest priced market had a median listing price of $147,000, 63.1% lower than the countrys January median. Looking ahead, our expectation is that mortgage rates will continue to remain high in 2023 as economic growth slows, but does not falter and inflation begins to decline, but remains above target. Record-high real estate wealth is in large part due to the, more than decade-long increase in the price of homes, which are expected to notch double-digit gains for a second year in 2022. Please be nice. There will be some things for buyers to look forward to in 2023. Interestingly, despite the market headwinds, homeownership rates increased from one year ago overall and for all racial and ethnic groups. Renters will get to experience all of the pros and cons that come with the flexibility of renting. On average, Clever sellers save $7,000 on commission! In addition, rising housing costs, stemming from a twenty-year high mortgage rate and slowing new construction, may keep many potential homebuyers in the rental market longer and thus fuel the already high rental demand. Vacancy rates have begun to improve from long-time lows, which will help rent growth further moderate. The average listing price for these midwestern markets was $252,000, 37.0% below the national median. The hottest markets saw median listing viewership an average of 1.9 times higher than was typical in the US in January, emphasizing the sustained popularity of these hot markets relative to the full US market. California's median home price is forecast to decline 8.8 percent to $758,600 in 2023, following a projected 5.7 percent increase to $831,460 in 2022. can estimate the length of tenure needed for buying to make more financial sense than renting and allows renters to customize for location and tax specifications. We often talk about the housing market as a single entity, but in reality, shoppers are actually contending with conditions that may differ from the national trends depending on features such as location or price tier. The increase in interest rates slashed affordability for buyers who didnt have the extra cash to put down or high-enough incomes to qualify for higher monthly payments. Put another way, every 1% change in the price of homes is a swing of more than $400 billion dollars. Despite short-run headwinds from below-average buyer demand, builders have not kept pace with household formation, which means that the market began 2022 with a revised 5.5 million cumulative housing unit shortfall, an estimate that. In the fourth quarter of 2022, this metro received the most (52.2%) out-of-metro attention from viewers in the nearby Chicago, IL metro area according to Realtor.com Cross-Market Demand data. That means mortgage rates will keep climbing, possibly near 8.5 percent. Posted on Affordable Midwest metros held 12 spots on this months list, the most spots in a single month for the region in the datas history. One of the Massachusetts markets, Worcester, is well-poised for growth, rising to the top of the. Brewbaker says that before the pandemic sent the market into overdrive, Oahu was headed toward a $1 million median price for single-family homes by the end of 2023. While the median sales price overall for Hawaii was $717,200 in July 2022. This year will be remembered as the one when the rapid rise in Covid-era home sales was halted by a sharp increase in mortgage interest rates, from 3% at the start of the year to 7% this fall, even as prices continued their upward march. The Fed Funds rate lifted off of zero in March and moved up faster than any tightening cycle in the last 40 years to its current 3.75% to 4.0% range, with more hikes expected. As a result of these changes, the data released since October 2022 will not be directly comparable with previous data releases (files downloaded before October 2022) and Realtor.com economics blog posts. As a result, sellers can expect more competition from other for-sale listings, longer sale timelines, and more negotiation with buyers. The Manchester-Nashua, Springfield and Worcester metro areas all surround the Boston metro area, which is also on this months list, emphasizing the demand to be near this Northeast hub. . The median home value in Honolulu is $873,237. In January 2023, home prices in Hawaii were down 5.2% compared to last year, selling for a median price Median Sale Price All Home Types The direction and pace at which home prices are changing are indicators of the strength of the housing market and Show More This market was priced more than $50,000 below the nations median, and garnered nearly double the views of the typical US property, on average. Additionally, the combined impact of pandemic and conflict-driven shut-downs could cause businesses to reassess the costs and benefits of international supply networks. Will owners who are no longer able to do short-term rentals due to the passage of recent legislation (Bill 89) decide to sell, thus freeing up more inventory? In October 2022, the total inventory of homes for sale increased by 0.5% compared to the previous year. The year-to-date single-family home median price on Oahu through Nov. 30, 2022, was $1.1 million. Lenders are required to disclose this information, and shoppers thinking about taking on an adjustable rate mortgage should compare these amounts when shopping. People are still moving here and Buyers still need homes,even if higher rates mean less affordability. At their peak in 2022, mortgage rates were up by roughly the same amount since the beginning of 2022, and up more than 440 basis points since their all-time low in early 2021. show that more than 1 in 5 home listings had a price reduction in the month, nearly double what was typical at this time of year in 2020 and 2021, and just below what was typical at this time in 2018, when mortgage rates were then at the highest level in 7 years. The war has caused incredible suffering and loss of life alongside the destruction of physical capital and renewed disruption of global supply chains, contributing to inflation in the near term via the cost of energy. In fact October 2022 was the first time that inventory climbed back to its 2020 level for the same time of year. Watch for Realtor.coms. Falling from 7 million to 5 million would be a decline of about 30% and put the contraction in home sales in line with other historical periods when interest rates increased. This would be a nearly 28% increase over the mortgage payment in 2022, and roughly double the typical payment for buyers in 2021. Soaring prices were propelled by all-time low mortgage rates which are a thing of the past. If you want to know what the future holds for real estate, youll have to wait like the rest of us. In fact, among recent renters surveyed, only a third (32.3%) indicated that they are considering buying a home within the next 12 months. Western markets vacated the list again in January. The average sale price of a home in Mililani Town was $685K last month, down 2.9% since last year. Taking out an ARM instead of a FRM to finance 80% of todays typical home list price saves nearly $225 per month or nearly $13,400 over the first 5 years. In fact, among recent renters surveyed who are not planning to buy a home within the next 12 months, nearly half (44.4%) said it was because they did not have enough savings for a down payment. The local median home value is nearly three times the national average at its current valuation, which currently rests somewhere in the neighborhood of $320,662. Incomes, mortgage rates, and home pricesthe three major components that determine whether housing is affordablemay feel like the three fates for home shoppers. So, what lies ahead in 2023? million, their lowest since 2012 (4.66 million). among recent renters surveyed, only a third (32.3%) indicated that they are considering buying a home within the next 12 months, . Will prices stabilize? Test this out using todays rates and home prices in the, However, shoppers should be sure to understand the terms before choosing one of these mortgages. Hawaii, Yes, demand for Hawaii remains high. In 2022 home shoppers experienced the reverse. The beginning of 2022 was a continuation of 2021 high demand, tight inventory, low interest rates, escalating prices and bidding wars! For listings in Canada, the trademarks REALTOR, REALTORS, and the REALTOR logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Our quarterly house price forecast was modestly upgraded but still represents a view of significant deceleration in prices. Our agent matching service is 100% free with zero obligation. Southern markets were represented on Januarys list by Roanoke, VA, ranked number 8. Home sales price: The median existing-home sales price rose 3.5 percent from one year ago, to $370,700, according to November 2022 data from the National Association of . Market Update, He noted that mortgage rates have likely already peaked. In some cases, buying can be a smarter option after as few as 3 years, but generally, buying is a better option after a longer, 5 to 7 year time horizon. Unlike the recent trend of renting in the suburbs to take advantage of remote work to lower housing costs, the premium on urban rentals has shrunk sufficiently to draw people back to big cities to enjoy their diverse social and cultural offerings. Are you suggesting that we do not invest in 2022-2023? If seller activity re-ignites as prices are expected to continue to grow (albeit at a much slower pace), inventory could rise further beyond current expectations. Hawaii Housing Market Forecast: Demand to 2025. While time on market is expected to slow amid fewer home sales in the year ahead, well-priced homes in highly desirable markets may still sell quickly. As mortgage rates are expected to remain elevated through to the end of 2022 and into 2023, we expect slower market conditions to persist and we expect inventory levels to continue to grow gradually as the turnover of homes slows. Today, the interest rates are in the 6 to 7 percent range. The Manchester-Nashua, N.H. metro area was the countrys hottest market again this month. Sincerely, Lisa Odle, One of the benefits of living in Hawaii is the opportunity to be outside just about every day of the , One of the best things about living in the Hawaiian Islands or even just visiting is experiencing the , If you havent purchased a property on Maui before, this will be your quick guide on what the process looks , No Reserve Auction: Build Your Dream Ocean View Compound on Rare 15 Acres with Opportunity for AG Structures & Potential . This information is believed to be accurate. But with mortgage rates continuing to climb as the Fed navigates the economy to a soft-ish landing, a moderation in home price growth will not be enough for the housing market to be a buyers bonanza. Given the roller-coaster ride inventory has been on lately, its important to keep historical context in mind. One silver lining for renters is that despite slowing single-family construction, builders have generally ramped up the construction of multi-family units that are typically rental homes. In scenario #2, the consumer price index responds more to the Fed's rate hikes, and there is a gradual deceleration of . Hi, I'm Don Pelletier, owner, and broker at The Don Pelletier Group. At their peak in 2022, mortgage rates were up by roughly the same amount since the beginning of 2022. , and up more than 440 basis points since their all-time low in early 2021. retreated as markets cheered the recently lower inflation reading. We are continuously working to improve the accessibility of our web experience for everyone, and we welcome feedback and accommodation requests. Here are some of the ways this will affect home shopping and the real estate landscape. In the year ending in June 2022 first-timers made up the smallest share of homebuyers on record, just 26% of all home sales, according to the National Association of Realtors. While theyve retreated as markets cheered the recently lower inflation reading, we expect rates to climb somewhat further before their ultimate peak, given how much further the Fed is likely to go before ending the tightening cycle.