Source: CNBC —
Even with rising homeownership costs squeezing out buyers, some real estate markets will remain hot in 2023, mostly due to their relative affordability compared with the rest of the U.S., a new forecast finds.
The top places have something else in common, too: They’re all located in the South.
Based on a variety of factors, including home affordability, job growth, migration gains and housing supply, the National Association of Realtors (NAR) analyzed 179 markets to determine which will offer the most value to buyers. The data looks back one year from October 2022 and reflects expected demand from buyers in 2023.
The median price of homes in some of these markets isn’t cheaper than the national median of $398,500. However, these cities scored high on other metrics such as job growth or housing supply.
Here are the 10 best places to buy a home in 2023, according to NAR:
1. Atlanta-Sandy Springs-Marietta, Georgia
Median home price: $371,200
With major tech companies such as Apple, Microsoft and Visa opening Atlanta offices in recent years, the city has a robust job market.
The Atlanta metro area remains relatively affordable compared with other regions in the country. Over 20% of renters can afford to buy a median-priced home in the area, based on a calculation that includes a 10% down payment. The national average is 15.1%.
2. Raleigh, North Carolina
Median home price: $460,500
A fast-growing tech hub with low unemployment, Raleigh has seen home prices increase by almost 30% since 2020. With a median home price near $500,000, it is the most expensive of the top 10 markets for 2023.
However, “local home listing prices are coming down from this summer’s peak, home inventory has increased 188% in the last 12 months and unemployment in Raleigh is lower than it was pre-pandemic,” said Jay Nelson, communications director at the Raleigh Regional Association of Realtors, in a recent interview with The News & Observer.
3. Dallas-Fort Worth-Arlington, Texas
Median home price: $390,100
Dallas-Fort Worth is another emerging tech hub in the U.S., with job growth nearly twice as high as the national average, which was 3.4% for the year looking back from October 2022.