Whether you’re on the hunt for a home or eating popcorn as you watch the housing market go up in flames, everyone needs to know what’s going down in the realm of home buying. The world is changing and has morphed rapidly over the past year. At the start of 2022, real estate markets all over the world were battling huge demand, limited supply sources, and skyrocketing prices. Peeking into 2023, the outlook is changing dramatically because of central banks raising interest rates. Even though a small number of home prices are dropping and houses are sitting quietly on the market, predictions are suggesting the industry is normalizing the trend we’re seeing in home buying.
In the United States, markets are finally arriving back to comfortable levels due to a historic pricing correction. Jonathan Miller, head of NY-based company Miller Samuel, notes that clearly, the Fed imposing high-interest rates had a major impact on all housing markets around the US because rates were low for way too long. It created a supply-demand that just wasn’t attainable and bruised the economy. While there are looming whispers of an impending recession, Miller, among many others, thinks it’ll be light compared to some we’ve had in the past, because of our strong labor market.
Several major cities around the world are feeling the rift, like Sydney and London. Alternatively, locations that have seen a huge influx of residents in recent years aren’t likely to see any impact, like Miami and Tampa. Luxury real estate experts are weighing in on what they predict for the future, with a particular interest in New York and Miami.
As for NY, following 2021, a record-setting year for sales activity in the city, they’ve already seen a huge slowdown by the end of 2022 and it’s expected to last through the second quarter at the very least.
Miami is one of the locations that saw a huge influx of newcomers since the beginning of the pandemic, and demand has been so high that inventory is struggling to keep up. Right now there’s a complete reconstruction of Miami real estate going down to meet the demands of residents, helping construct a “pro-business” atmosphere.