Is the Houston Housing Market Going to Crash in 2023?

During 2022, many were predicting that a housing market crash was bound to happen this year. Understandably, this has a lot of Houston residents worried, and many have begun preparing for the worst. But is there really anything to worry about? Let’s take a look at why people have been predicting a crash, and why Houston may not experience one at all.

  • A Bubble About to Pop?
  • About the Decline…
  • The Possibility of a Market Crash
  • What You Can Expect for Houston

A Bubble About to Pop?

When the market value of an asset—like real estate—rapidly increases, it’s often described as a bubble. Using the term “bubble” when referring to current market conditions is a bit misleading since it implies that there will eventually be a “pop.” In this case, a pop would mean a massive, dramatic crash in the housing market. Houston residents have been gearing up for this over the past year. After all, current prices in the Houston real estate market are significantly higher than normal.

However, none of this means for certain that a crash is definitely going to happen. Based on past trends and the way things are currently headed, we should instead be expecting a gradual decline in real estate prices in 2023, rather than the devastating market crash people have been worried about.

About the Decline…

Falling prices may be great for buyers, but they aren’t a good situation for real estate agents and sellers to be in. In Houston, since there are so few homes on the market right now, competition and prices are relatively high, and lower-priced houses will get more offers very quickly. Your main takeaway from this should be: If you’re planning to sell your home within the next year, you should get your home on the market now while demand is high and prices are higher so you can get the most for your home.

The Possibility of a Market Crash

Even though most of the signs don’t point to the possibility of a market crash this year, no one can say for certain where the market is heading. With the right conditions occurring at the right time, an unexpected crash could happen, and it might be a good idea to prepare for the worst, even when it isn’t statistically likely. Here are a few factors which could lead to a crash, so you know what signs to look out for:

Sudden High Unemployment

Unemployment rates don’t affect much when they go up by a small amount, but a big upward shift in unemployment rates could significantly drag the housing market down. If a lot of people are without jobs, they may end up frantically trying to sell their houses, and we could see a spike in foreclosure numbers.

Buyer Demand and Motivation

Demand and Motivation are arguably the two most important aspects of the housing market in Houston. After all, if no one is buying houses, the market wouldn’t exist at all. It would be a very bad sign if the public’s demand and motivation to buy houses started to drop suddenly.

Homebuilding

When it is thriving, homebuilding leaves more desirable houses on the market. However, during the pandemic, many builders struggled with rising material prices and increasing difficulty in obtaining building permits. This 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.

What You Can Expect for Houston

Over the course of 2023, we think you should expect to see housing prices gradually fall to lower levels. While this might sound a bit worrying, remember it is completely normal! Prices have skyrocketed in Houston recently, and they will simply be sinking back to normal market value, so there’s no need to panic!

And 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 832-979-9556 to start working with a team that will help and support you every step of the way!

Your Home SOLD for 100% of the Asking Price or We Will Pay You the Difference.* No Gimmicks! Visit us HERE for more information.