The fears in Texas real estate for 2023 are creating huge opportunities for those who are willing to face them head-on. Though it feels like we keep seeing headlines buzzing over people's greatest fears, that doesn't tell the whole story.
While some sellers may worry that they have missed peak prices, there are still plenty of positive outlooks for 2023. And that means there are still plenty of opportunities to thrive in the Texas housing market!
Fears of a Housing Market Crash Are Creating Huge Opportunities
Though fears of a housing market crash are still present, it's important to note that fears can be great motivators. The fears in the Texas real estate industry have created huge opportunities for those who are willing to take them on. Here are five big fears in Texas real estate - and the reality of how dire or minor the situation is.
The 5 Biggest Fears In The Housing Industry - And How They Can Be Opportunities
With fears around affordability rising, this is an opportunity for buyers to get into the market with lower prices and fewer restrictions. The headlines aren’t all wrong. While the housing market is likely to lose value in 2023 and 2024, it's more of a market correction than a crash.
This can be great news for buyers who’ve been pushed out of the market by sky-high prices these past few years. In fact, Dallas is one of the hot markets seeing a significant price drop in homes, which could be great news for buyers.
But that’s not to say that sellers should fret! In Texas, where houses are still in high demand, sellers will still be able to command high prices for homes, just not with the same level of reckless bidding as in the previous year.
Low inventory levels mean that there are fewer homes available, but this also creates possibilities for investors looking for renovations or flipping projects. You may have read about the national housing shortage, and that isn’t changing much.
According to the National Association of Realtors, as many as 7 million homes are needed to address current shortages. This could mean an opportunity for someone with the capability to buy land and build multi-unit dwellings or to split a property and build two homes.
• Interest Rates
Again, headlines have been warning of higher interest rates. But historically speaking, today’s higher rates are still very low. And with one more interest rate hike in 2022, we are unlikely to see another jump anytime soon in 2023. Thus, current trends suggest rates might remain historically low throughout 2023, creating a further incentive for first-time buyers to get into the market.
• Economic Uncertainty
Though fears of another recession remain, they also present numerous opportunities for those who can think outside the box and know how to be FTL - future-thinking leaders. Nothing in life is guaranteed, and the economy is always proof of that. Inflation and unemployment are always a real concern, but markets are trending in the right direction for both of those factors.
• Environmental and Political Concerns
These fears are creating a heightened awareness around climate change and increased regulation of businesses in Texas, leading to more options for green building materials, energy-efficient appliances, and environmentally friendly construction. Consider how climate disasters and political geography may impact where you want to live, but keep in mind that Texas is a BIG and diverse state.
Have Sellers Missed Peak Prices?
The fears of peak pricing may seem daunting at first glance, but there is still plenty of potential in the Texas real estate market this year. Many experts agree that prices will remain relatively stable, though, as always, it's best to talk to a real estate professional for an accurate picture.
Where Home Prices Could Drop
Though fears of a housing market crash may be unfounded, there are certain areas of Texas that could see prices drop due to economic uncertainty. The most affected areas will likely be those with higher levels of foreclosures and distressed properties, so it's important to do your research before investing in these markets.
However, if you’re after a deal, major cities in Texas should offer more affordable options in 2023. In fact, Dallas is one of the major metropolitan areas inching back toward favorable pricing this year!
Some Positive Outlooks For 2023
Despite fears around affordability and the potential for rising interest rates, there are still some positive outlooks for 2023. With strong population growth in many parts of Texas, the demand for homes is expected to remain high throughout this year. Low inventory levels also create plenty of opportunities for investors looking to flip or renovate properties.
A Final Word on Texas Real Estate for 2023
In conclusion, fears in the Texas real estate industry are creating huge opportunities for those who can face them head-on. There may be fears of affordability, inventory levels, interest rates, economic uncertainty, and even environmental/political concerns - but these fears create great potential for those looking to thrive in the market this year!
So don't let fears hold you back - take advantage of the opportunities before you and make the most out of your Texas housing experience in 2023. And if you have any questions about securing a loan to buy a home in 2023, the experts at Texas United Mortgage are here to help!