Is The Raleigh Housing Market Going to Crash in 2023?

During 2022, you might have heard a few different sources predicting there would be a housing market crash this year. These predictions have many Raleigh residents understandably worried. After all, housing prices are currently higher than they normally would be. But is there any truth to these predictions? Let’s look at whether or not you should be worried about the housing market this year.

  • A Bubble That’s About to Pop?
  • The Time to Sell in Raleigh is Now
  • How a Market Crash Could Happen
  • What Can You Expect?

A Bubble That’s About to Pop?

A lot of people have been using the word “bubble” to describe Real Estate’s recent rise in market value. This image of a bubble misleadingly implies that it is bound to pop sometime in the future, meaning there will be a devastating crash in the housing market.

People in Raleigh have been preparing for this “pop” and worrying about it for a year since the prices in the Raleigh real estate market have been significantly higher than they theoretically should be. However, none of this means that a crash is imminent. In fact, we should be expecting a slower decline in Raleigh real estate prices in 2023 instead based on past trends and the way things are currently headed.

The Time to Sell in Raleigh is Now

Low housing prices are a great situation for buyers, but not so great for sellers and Real Estate agents. Because there are so few Raleigh homes on the market right now, competition is higher than normal, and lower-priced houses will usually get offers very quickly. The main takeaway is this: if you’re thinking about selling your home, there is no better time to act than right now. You should get your home on the market while demand for homes is high and prices are higher.

How a Market Crash Could Happen

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, and it’s good to make sure you’re prepared in case the unexpected does happen. Given the right conditions and circumstances in the right combination, a crash could possibly occur. Let’s review a few of the factors that contribute to the instability of the housing market so you can know what to look out for:

Unemployment Rates:

Although a small, gradual rise in unemployment rates won’t affect much in the grand scheme of things, a large unexpected rise in unemployment rates could cause a less than ideal shift in the market. If many people are without jobs, they may frantically try 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, the rising prices of materials meant builders were struggling and facing 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 housing market in Raleigh. After all, the market won’t exist at all if no one is buying houses. If demand and motivation to buy houses started to drop suddenly, it could mean bad things for the housing market as a whole.

What Can You Expect?

This year, we think you should expect to see a gradual decline in prices in the Raleigh housing market. While this might sound bad, it is nowhere near the dramatic “popping bubble” that people have been worrying about since 2022! Prices have skyrocketed recently and will simply be sinking back to a more appropriate market value over the course of the year.

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 919-444-8363 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.