A new year means new possibilities. For many, that translates to being the perfect time to move — although maybe not right as the year starts! Everybody is still recovering from the holidays, and winter isn’t the most hospitable season. As the year progresses, though, more people will begin planning a move.
The other thing a new year brings is new trends. It may be impossible to predict the future, but analysis can reveal what trends will come into vogue in 2023. If you plan to move in 2023, these are the trends you’ll need to be aware of.
A Shift Toward Automation
Many industries have begun integrating autonomous “employees” alongside their human staff. Whether it’s for safety or productivity reasons, it’s not uncommon to see robots on the assembly line. The moving industry is no exception, at least in some ways. The rise of social distancing has kept real-estate agents and potential customers apart. You may have to tour your future home via a live video, for example.
Other potential uses for automation may be in assessing your belongings. You’ll send the moving company footage of your items and a detailed list. They’ll send back an estimate of how much the move would cost. It’s more efficient and safer than meeting face to face. By the end of the year, who knows? Maybe we’ll have self-driving moving trucks.
If the influx of technological methods is concerning, you may be out of luck. Analysts believe that the moving industry is due for even greater overhauls due to the impact of COVID-19. It’s difficult to predict what these changes will be. All experts know for sure is the old way of moving — how it was pre-pandemic — may be history. Moving companies had to adapt to new regulations and standards, and it’s likely they’ll never look back.
Inventory Is Up…
Every year, Realtor.com releases a housing market forecast, revealing what they think will happen in the 365 days to follow. These predictions should not be taken as concrete facts, but they provide insight into how the market may change. For example, 2023’s infographic says housing inventory will be up 22.8 percent compared to 2022. That still lags behind pre-pandemic levels, but it’s an improvement.
…But Affordability Is Not
There are a lot of contributing factors to the housing market being so expensive. The pandemic is an obvious culprit, but there’s more at play. The rise in rental homes and Airbnb, for example, is driving up the price of homes on the market. Inflation and stagnating wages means it’s difficult to save enough to buy a home at all — and that’s before accounting for additional costs such as utilities and taxes.
Prices are expected to go up 5.4 percent throughout 2023. That may not sound significant, but remember how much prices have risen in the past few years. Even a small price hike can result in a house no longer being viable. The silver lining is that the rate of increase is slowing. Experts aren’t certain when prices will return to pre-pandemic levels — if ever.
Shopping Around Is Key
Luckily, there are ways to work around the rising prices of the housing market. Cross-market shopping — looking for homes outside your local area — is critical to finding something in your budget. Cross-market shopping already saw a healthy boost in years prior, but it’s reaching new highs as homebuyers search for affordable houses. If relocating is a viable option, it may be worth considering.
The housing market is somewhat volatile, but the moving industry isn’t. Prices skyrocketed during COVID, and the hike in prices for moving supplies burdened potential movers. Prices for things such as boxes, packing tape, and trucks are returning to pre-pandemic levels though. Assuming you can find a house, moving to the new neighborhood won’t break the bank.
Popular Cities Aren’t the Ones You Expect
The Realtor.com report also lists projected growth rates for major cities in the U.S., which is useful whether you’re looking cross-market or staying local. According to the forecast, some of the fastest-growing cities in 2023 will be Hartford, Connecticut; Buffalo, New York; and Columbia, South Carolina. The overall champion? El Paso, Texas, with a projected 8.9 percent growth rate. This points toward an influx in smaller metropolitan areas. Dreams of making it in the big city may be history.
International Is on the Rise
If you’re looking even further abroad than cross country, you aren’t alone. Shifts toward remote work are leaving people with opportunities to travel, and the international housing market isn’t quite as unforgiving as the United States. Experts predict that Australia, Mexico, and parts of Europe will have the greatest influx of American homebuyers.
Mortgages Remain High
If you are staying in America, expect to pay a higher mortgage. Realtor.com predicts rates will remain elevated. The site forecasts a hike early in the year, with rates around 7.4 percent. The rates will dip as the year goes on, eventually dropping to around 7.1 percent. If you want to secure a lower mortgage, it may be worth waiting until the market evens out.
As for what it means for individual payments, there’s more frustrating news. It’ll be up 28 percent from previous years, with an average payment of around $2,430 per month. It’s very likely this will keep some potential buyers out of the market.
What is an average mortgage? It depends on the house and location, but pre-pandemic it was anywhere between 3.95 percent and 5.34 percent. In 2021, as the effects of the pandemic were becoming more obvious, mortgage rates dropped to a new low of 3 percent. It’s unlikely they’ll ever reach those levels again.
Overall, It’s Returning to Normal
Both the housing market and the moving industry are in a state of uncertainty. For the latter, at least, trends are pointing to a year more in line with pre-pandemic levels. If you have the house and finances, getting to your new home won’t pose any difficulty as long as you prepare for your move. Just keep in mind the forecast, and it should be smooth sailing.