Real Estate investment is something many Americans have in mind throughout their lives. The housing market is a very complex one and it is extremely expensive too. It was last year when the prices of houses were more costly than ever before. According to the Federal Housing Finance Agency, the price of homes went up 9.8% in just one year.
So, when we compare the Real Estate value of houses in October 2021 and in October 2022, it was an increase of almost 10 percent. The comparison is even more shocking if it is with the year 2020. According to USA Today, the median price of houses increased by 50% from the first month of 2020. As the Federal Reserve raised the interest rates, many people delayed the purchase of their new homes.
Where will houses have lower prices in the USA in 2023?
According to USA Today, the areas where the price went up a lot during the pandemic, are more likely to see their prices go down. They cite places like Phoenix, Boise, and Austin. Therefore, as they probably the Real Estate market reached its peak, it is more than likely that the housing market prices there drop the most.
Remember that many people decided to move to the coast where they could enjoy themselves being outdoors and breathing fresh air. Eating outdoors, and going to street markets is easier in those sunny places where the weather is simply better. However, as so many people thought about the same places, the Real Estate market was affected and prices soared.
In which Real State market will prices go up?
Those areas where the houses could be damaged by weather conditions will certainly have higher prices according to USA Today. No wonder insurance is more expensive in those places, thus, it makes Real Estate prices grow continuously. As the risk goes on in those areas where hurricanes, the sea, or floods could destroy it, insurance prices continue increasing. What is more, wildfires are becoming more frequent in certain areas.
So often that some insurers do not offer the possibility to get insurance in those areas. Take for example some areas in California and Florida. If there are fewer insurers, those remaining ones have exorbitant prices affecting homeowners a lot. Bear in mind that the Real Estate market is probably the one in which US citizens will invest more money. That is why is so important to take all the pros and cons of buying a new house and its location. It is not a decision to take on the spur of the moment.