Source: Fox Business —
El Paso, Texas, and Detroit may be the most affordable markets to move to in 2023, but that doesn’t make them the best investment, according to Redfin chief economist Daryl Fairweather.
Uncertainty surrounding the economy — coupled with high mortgage rates, which are still hovering above 6% — has pushed many would-be homebuyers out of the market. Redfin data shows that home sales in November were down 35% year-over-year.
Fairweather offered tips for potential homebuyers on where the best and worst places are to invest in if moving in the new year.
“If you want to avoid a situation where you buy a home, and then it goes down in value over the next couple of months, I would avoid the Sun Belt,” Fairweather said.
Specifically, Fairweather mentioned Austin, Texas; Phoenix; and Las Vegas, due to the risk of price declines in the near future.
In a report earlier this month, Redfin cautioned that homeowners in certain parts of the country including Las Vegas and Phoenix “are at higher risk” for falling underwater on their mortgage.
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