2023 is shaping up to be an interesting one for the real estate market. While some markets will continue to rise, changing job markets will affect the prices of properties in surrounding areas. Inflation will also continue to affect consumer behavior for the foreseeable future.
Keeping ahead of these trends can help you make better decisions if you’re interested in buying land in Texas in the coming months.
Real Estate Trends for 2023
1. Mortgage Rates Will Slow Down the Market
Rising mortgage rates make the higher property prices hit harder. Many of those interested in purchasing property are waiting, and this will likely continue to occur until mortgage rates, home prices, or both, decrease.
2. Buyers Will Look Into Different Financing Options
Higher mortgage rates mean that many buyers will be examining their financing options. Adjustable-rate mortgages (ARM) can save some buyers money, so they may become more popular in the year to come.
Buyers may also opt for owner-financing to skip higher mortgage loan rates. There are some risks associated with the various forms of financing, but more buyers are likely to research these options.
3. Remote Work and New Company Locations Will Raise the Prices in Some Markets
Remote work has allowed many more people to move away from areas with high property prices and settle in different markets. Many companies are also moving their offices away from metro areas, bringing higher salaries to their new location, which can mean more buyers with higher budgets.
If you’re looking to buy land in Texas to be close to one of these jobs, move fast before the costs increase. This can also be a great chance to finally own property since you won’t have the burden of higher metro area rents.
4. Commercial Lots Will Be In Demand in New Markets
As higher-paying jobs move to a given area, the buying power of the average consumer will increase. This means new businesses will have a better chance of finding a market. Businesses like restaurants and retail will have more demand as the population of the area increases.
If you are looking for commercial lots for sale in Edinburg, this may be a good time to consider taking the plunge.
5. Cross-Market Moves Will Lower Metro Prices
Prices in metro areas will likely start to drop as workers leave for more affordable areas. When high-salary jobs leave an area, it also causes home prices to start dropping to meet the affordability needs of the remaining residents.
Once jobs move out of an area, there will also be less demand for all homes. You may find certain markets less competitive even if prices aren’t dropping as quickly as you hoped.
Make the Jump Into Owner-Financed Properties
If you want to buy property while avoiding high mortgage rates, owner-financed properties may be perfect for you. There are so many great lots in Edinburg that you’ll be sure to find the right one for you.
The team at Santa Cruz Properties can teach you about your options and help you find amazing properties in the RGV.