Page 42 - The Houstonian Review - Fall Issue 2022 | Sintia Solis

It’s no secret that the real estate market has been buying a home more affordable and often results
on a roller coaster ride over the past few years. in more people buying or upgrading to bigger
After reaching record highs in 2006, prices came homes. Conversely, when rates are high, people
crashing down during the financial crisis of are less likely to buy homes and may even look to
2008. Since then, we’ve seen a slow and steady downsize instead.
recovery, with prices finally starting to reach Based on current trends, it’s expected that
pre-crisis levels in many parts of the country. But interest rates will remain relatively low over the
what does the future hold? Will prices continue next few years. This should continue to support
to rise, or are we due for another correction? strong demand for both new and existing homes.

In this article, we’ll take a look at some of the
factors that will influence the real estate market Economic Conditions
in 2023 and beyond. We’ll also make some Another important factor is the overall health of
predictions about where prices are headed and the economy. When unemployment is low and
what type of properties will be in demand. wages are rising, people feel more confident
about their finances and are more likely to buy
Interest Rates
a home. We’re currently seeing strong economic
One of the most important factors influencing conditions, with low unemployment and solid
the real estate market is interest rates. When wage growth. This is good news for the real
rates are low, as they are now, it’s cheaper to estate market and should result in continued
borrow money for a mortgage. This makes price increases through 2023.

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