Is the Houston Housing Market Going to Crash in 2023?
Houston’s real estate market has appreciated nearly 95% over the last ten years. However, the Houston housing market continues to experience an unprecedented surge in demand. As such, there is much speculation about whether or not the market is likely to suffer a crash in 2023. With high home prices, tight inventory, and continued uncertainty about the economy, this is a question that many potential buyers and sellers are asking. The article will take a closer look at the current state of the Houston housing market, explore the factors that could help explore what the year 2023 may hold and discuss ways to prepare for potential market fluctuations.
1. Houston Population Growth in 2023
Houston has recorded a population growth rate of about 1.5% from 2022, and projections show that this rate could increase further in 2023. This increase in population means there will be more people seeking housing, which could increase the demand for housing and drive up prices. Additionally, with so many people moving to Houston, new construction and development projects will likely be necessary to meet the growing demand for housing.
The new construction will also add more jobs, which could further contribute to Houston’s economic strength. Ultimately, these factors should contribute to a strong housing market for the foreseeable future. Meanwhile, Long Distance Movers play a crucial role in interstate and international moving into the Houston area, helping people relocate stress-free and at an affordable rate. That makes them an essential part of driving housing prices in the city.
2. You Cannot Ignore Houston for Long-Term Investment
Though the rate of appreciation of the housing market in Houston is likely to slow down, investing in the market is still a viable option for persons with an eye on long-term gains. While some short-term gains are possible in rising markets, this often comes at the risk of being caught on the wrong side of economic trends.
While there may be some short-term volatility and uncertainty in the housing market in Houston in the coming years, taking a long-term view and utilizing strategic investments can help ensure financial security. Furthermore, buying a home now could benefit those who plan on living there for some time as it will allow them to accumulate equity over time.
3. The Houston’s Economy Continues to Grow
Houston has a healthy economy which helps prevent the housing market from crashing. For example, Houston expects 61,000 job gains in 2023. The Houston economy is growing in a variety of sectors. This past year, the job market in the Houston area has seen a steady increase, with more than 11,000 jobs added in 2020. The energy sector has driven the economy’s growth in Houston due to a resurgence in oil prices.
The tech sector has also been booming, with new startups and venture capital investments all over the city. Furthermore, Houston’s real estate market has remained stable because Houston has seen an influx of new residents and investors in recent years, creating a healthy market for both buyers and sellers. That means Houston will remain a moderate market for home sellers. So watch out for upward pricing in the year 2023.
4. Housing Inventory is Favorable
The Houston housing market has seen an increase in inventory over the last few months, and it’s now at 2.9 months. That means there is currently 2.9 months’ worth of homes available for sale, which is a significant change. The increase in inventory is a sign that the Houston housing market will be buoyant in 2023.
The additional supply of homes for sale means buyers will have more options, which could help prevent prices from dropping significantly soon. Additionally, the increased inventory also gives potential sellers an incentive to list their homes, as they won’t have to worry as much about competition in the market. More buyers also mean that sellers can get more favorable offers than they may have otherwise.
Real estate trends overwhelmingly suggest that the Houston housing market, while somewhat cooling off, will remain a moderate housing seller’s market in 2023 and beyond. The market price forecast for 2023 remains positive. Overall, the Houston housing market is stable, and there is no indication that it will crash in 2023. Prices are still increasing due to increasing demand, although at a slower rate than in previous years.