Will Your City Favor Buyers or Sellers? Real Estate Creates Predictions for 2023

A recent analysis of the 2023 housing market suggests that the days of 40-person bidding wars and six-figure oversupply bidding may be over.

Average home prices across the country will rise by 17.6% in 2021 and another 10% in 2022. These price spikes in recent years have delighted home sellers, but are now being held back by high mortgage rates.

“Since mortgage rates doubled from January to October [2022], average prices have fallen every month and are likely to continue falling in many markets across the country in 2023, prompting home sellers to is likely to become less profitable," Rick told Property Data Sharga Tracker Atom Associated Press. His Knock, a mortgage lender, has created a buy-and-sell market index to assess the state of the housing market in 100 major cities across the United States. A year ago, all of his 100 markets analyzed by Knock were preferred sellers, the company said. At the beginning of 2023, 13 markets were buyer-first, 43 were neutral, and 44 were seller-first. Knock predicts that over the next 12 months, more markets will shift to buyer preferences.

His sole North Carolina city reportedly remains an exception. Fayetteville, with a population of about 200,000, is the only market not moving to buyers in 2022.

2023's top markets for buyers will be:

1. Dallas-Fort Worth-Arlington, Texas

2. Las Vegas-Henderson-Paradise, Nevada

3. Salt Lake City, Utah

4. Phoenix-Mesa-Chandler, Arizona

5. Colorado Springs, Colorado

6. Atlanta-Sandy Springs-Alpharetta, Georgia

7. Deltona-Daytona Beach-Ormond Beach, Florida

8. Tucson, Arizona

9. Denver-Aurora-Lakewood, Colorado

10. Killeen-Temple, Texas

11. Charlotte-Concord-Gastonia, North Carolina-South Carolina

12. Jacksonville, Florida

13. Memphis, Tennessee-Mississippi-Arkansas

14. Detroit-Warren-Dearborn, Michigan

15. Des Moines-West Des Moines, Iowa

Even for markets where things are growing more favorable for buyers, Knock had some words of caution:

“Home shoppers will not see significant price declines in a majority of the 100 largest housing markets. Prices will decline, mostly by small amounts, in the next 12 months just in 16 large markets.”

The top markets for sellers will be:

1. Fayetteville, North Carolina

2. Columbia, South Carolina

3. Springfield, Massachusetts

4. Rochester, New York

5. Hartford-East Hartford-Middletown, Connecticut

6. Harrisburg-Carlisle, Pennsylvania

7. New Haven-Milford, Connecticut

8. Syracuse, New York

9. Allentown-Bethlehem-Easton, Pennsylvania-New Jersey

10. Albuquerque, New Mexico

11. Milwaukee-Waukesha, Wisconsin

12. Winston-Salem, North Carolina

13. Salisbury, Maryland

14. Portland-South Portland, Maine

15. Providence-Warwick, Rhode Island-Massachusetts

The report includes a forecast for 100 real estate markets around the country.

To create its Buyer-Seller Market, considering these six data points in each market:

the average sale-to-asking price ratio, the number of homes sold, number of active listings, the median days a home sits on market, the median sale price and the monthly home inventory.