You may have heard over the past year that the Housing Market is set to crash in 2023. Understandably, statements like this have a lot of people concerned about selling their homes. The truth is, it can be difficult to predict how the Real Estate market will change, though there are certain trends and shifts that, when analyzed, will let us anticipate developments that may occur in the future. Let’s go over some of the reasons why a crash may not be likely to happen in 2023.

  • Is the Market a Bubble About to Pop?
  • About the Decline…
  • The Possibility of a Market Crash in Atlanta
  • What You Can Expect

Is the Market a Bubble About to Pop?

When people talk about the rapid rise in market value of an asset such as Real Estate, they often use the term “bubble” to describe it. The image of a bubble implies that, sometime in the future, it is bound to pop, meaning there will be a massive, devastating, downward crash in the housing market.

This is what a lot of people in Atlanta have been heavily preparing for and worrying about over the past year since current prices in the real estate market are significantly higher than they should be. However, this doesn’t mean that a crash is definitely going to happen. In fact, based on past trends and the way things are currently headed, we are currently expecting a slower decline in Atlanta real estate prices in 2023, rather than the dramatic market crash people have been predicting.

About the Decline…

A market with low housing prices is great for buyers but not the ideal scenario for sellers and real estate agents. Because there are so few Atlanta homes on the market in the first place, competition is high, and lower-priced houses will usually get offers very quickly. So, if you’re thinking about selling your home in 2023, there is no better time to act than right now. Get your home on the market while demand for homes is high and prices are higher.

How a Market Crash Could Happen in Atlanta

Even though the likelihood of a market crash is low and a slow decline is much more likely, the housing market isn’t always predictable. At the right time, and with the right conditions, an unexpected crash could happen. There are lots of factors that could lead the market towards a crash, and in the right combination, they could push the market off the edge. Let’s review a few factors that contribute to the instability of the housing market so you can be prepared:

High Unemployment Rates:

Unemployment won’t affect much if it only increases by a small amount, but a large unexpected rise in unemployment rates could make the housing market take a turn for the worse. If a lot of people are without jobs, they may end up frantically trying to sell their houses, and foreclosure numbers could rise.

Homebuilding:

When it is thriving, homebuilding leaves more desirable houses on the market. However, during the 2020 Covid pandemic, builders struggled with the rising prices of materials and faced an increased difficulty in getting building permits. These combined factors can lead to a shortage of homes for sale, which causes prices to rise as they have recently. We are already expecting a continuation of this slow progress in the new-home market in 2023.

Buyer Demand and Motivation:

Demand and Motivation are arguably the two most important aspects of tracking the Atlanta housing market. After all, if no one is looking to buy a house, the market won’t exist at all. If the public’s demand and motivation to buy houses started to drop suddenly, it could mean bad things for the housing market as a whole.

What You Can Expect

In 2023, we think you should expect to see a gradual decline in prices in the Atlanta housing market. While this might sound scary, remember it is nothing to worry about! Prices have skyrocketed recently and will simply be sinking back to a more appropriate market value.

If you’re thinking of selling your home or buying a new one, there is no one better to help you than our team, EmpowerHome Team. We’ve helped thousands of families through dramatic market shifts, and we have decades of experience navigating the changing markets, so you can rest assured that we can get your home sold regardless of whatever the 2023 markets have in store. Most sellers last year had to call a second or third agent to get the job done, or even worse, not sell at all. The agent you hire the first time matters! Our team sells 98% of our listings the first time, so when you hire us, your home is more likely to sell fast & for top dollar! 

Call or Text us now at 404-301-3303 to start working with a team that will help and support you every step of the way!

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