Atlanta is the top real estate market to watch in 2023, according to the National Association of Realtors®.
During its year-end Real Estate Forecast Summit, NAR selected 10 metro areas it expects to outperform other markets in the coming year. The markets were chosen based on several factors, including housing affordability, number of renters who can afford to buy a median-priced home, job growth, population changes and housing supply.
“The demand for housing continues to outpace supply,” NAR’s Chief Economist Lawrence Yun said. “The economic conditions in place in the top 10 U.S. markets, all of which are located in the South, provide the support for home prices to climb by at least 5% in 2023.”
The top 10 markets identified by NAR are:
- Atlanta-Sandy Springs-Marietta, Georgia.
- Raleigh, North Carolina.
- Dallas-Fort Worth-Arlington, Texas.
- Fayetteville-Springdale-Rogers, Arkansas-Missouri.
- Greenville-Anderson-Mauldin, South Carolina.
- Charleston-North Charleston, South Carolina.
- Huntsville, Alabama.
- Jacksonville, Florida.
- San Antonio-New Braunfels, Texas.
- Knoxville, Tennessee.
NAR made several other projections for 2023, including 4.78 million existing home sales, a 0.3% increase on the median home price to $385,800 and mortgage rates of 5.7%.
“Half of the country may experience small price gains, while the other half may see slight price declines,” Yun said in a news release. “However, markets in California may be the exception, with San Francisco, for example, likely to register price drops of 10-15%.”
Yun also predicted rents will rise about 5% in 2023, which is on top of the 7% increase seen this year. He expects foreclosure rates to remain historically low, comprising less than 1% of all mortgages in 2023.