Real Estate Markets That Will Dominate in 2023

Hartford, Connecticut, will be one of the hottest real estate markets in 2023, according to a recent report from Realtor.com.

Realtor.com’s new report examines housing and economic data in the 100 largest metropolitan areas to determine a list of markets where sales and prices are anticipated to continue rising next year.

The report found that the markets on the list are midsize metropolitan areas that generally offer lower-priced homes that locals can still afford. All but one market on the list had median prices well under the national median of $417,000 in November because they didn’t experience the huge price spikes seen elsewhere during the pandemic. These markets also tend to have solid economies and are located near big employment centers.

Key highlights:

Hartford, Connecticut takes the #1 spot with a current median list price of $372,400 and a 2023 predicted price and sales change of 8.5% and 6.5%, respectively. The “Insurance Capital of the World” was named one of the hottest markets in the nation in October.
El Paso, Texas, is second with a $290,500 media list price and predicted price and sales changes of 5.4% and 8.9%, respectively. Two-thirds of shoppers were from outside the metro area. The most out-of-the-area views of listings came from Phoenix, Dallas, and Salt Lake City.
Third is Louisville, Kentucky, at $290,000 median list price and predicted price and sales changes of 8.4% and 5.2%, respectively. Nearly half of those looking at homes in the area were from other states, and the area has some of the cheapest mansions in the nation. It was also popular with investors during the pandemic.
Worcester, Massachusetts follows in fourth with a current median list price of $447,500 and a predicted price and sales change of 10.6% and 2.5%, respectively. Worcester has long been a significantly more affordable alternative to ultra-expensive Boston, which has a median list price of $739,900.
Fifth is Buffalo, New York, with a current median list price of $239,000 and a predicted price and sales change of 6% and 6.3%, respectively. Generally, prices in the metro area have risen about 3% to 5% annually.

Major takeaway:

“They are very affordable markets. These are areas where your housing dollars really stretch further,” said Realtor.com Chief Economist Danielle Hale. “These places did not overheat during the [COVID-19] pandemic housing frenzy over the last two years. That puts them on more solid footing. Prices and sales still have more room to grow. They are really outliers, especially when it comes to sales.”

“These are the real estate markets that are going to be more active” next year, added Hale. “If you’re a seller, it means you can expect buyers. If you’re a buyer, you can expect competition. And if you’re a homeowner, you can expect prices to rise, which gives you more equity in your home.”

For the full report, including the rest of the top 20 cities, click here.