WYOMING - While home prices continue to rise, home values may begin to fall by 2023. This is because current home prices are driven by a lack of understanding of future trends and fear of missing out. Millennials are also buying the majority of homes. The current euphoria is only temporary.
Demand For Single-family Homes
According to the latest data from Fortune Magazine, the demand for single-family homes in Wyoming is projected to grow by 11% from 2016 to 2023. While the rest of the country is experiencing a housing bubble, Wyoming is positioned to weather the storm better than many states. The state's housing market is considered overvalued, but the odds of a collapse are still very low. For example, the chance of a steep decline in home values is 0% for SE Wyoming but 20-40% for Central Wyoming.
In Wyoming, the average listing price is $210,000, and there is a high demand for single-family homes. The state's population has increased, which has led to an increase in prospective buyers. The cost of living is also cheaper, so remote workers can afford to buy homes with cash. However, the number of homes on the market is still low, making it difficult to predict whether prices will rise or fall. In any case, the market remains a Seller's market.
In July, Zillow economists predicted five regional housing markets to see a decline between 2022 and 2023. In August, Zillow revised that prediction to 123 markets. Home prices will decline in 259 of the 896 largest housing markets between 2022 and 2023, with Fairbanks experiencing the steepest decrease.
Rising Home Prices
If you want to invest in real estate in Wyoming, the time is now. Prices are rising, and there is a high demand for homes. As a result, inventory has decreased. There are not many houses on the market, which is leading to an increase in prices. As a result, sellers are pricing their houses higher than they should be. In Laramie County, homes are selling for about $412,000 on average.
Rising interest rates and weakening economic conditions are impacting the housing market. If interest rates continue to rise, the housing market will experience a slowdown. However, this doesn't mean that prices will plummet. If the housing supply increases, house prices should stay flat or even fall.
The lack of inventory is still a major factor in rising home prices. However, in 2023, the real estate market will shift slightly to favor buyers. In the second half of this year, the number of homes entering the market will increase. As a result, the market is headed for a cooling-down phase. This doesn't necessarily mean that home prices will fall, but they will remain high.
Low Mortgage Rates
Finding low mortgage rates in Wyoming can be beneficial when buying a new home. The state has relatively low rates for purchasing a single-family home, and the mortgage process is similar to that of other states. However, Wyoming mortgage rates can affect your budget. Although Wyoming's rates are generally lower than national averages, they may be higher than those found in other parts of the country, especially if you are considering purchasing a home in a high-priced area.
While it's difficult to predict what the mortgage market will do, some factors point to higher rates in 2023. The Federal Reserve has already started raising rates to fight inflation, and they want to make borrowing more expensive to slow spending. Those factors and a few other factors could make 2023 mortgage rates higher.
If you are considering refinancing your loan, you should shop around. Make sure you compare the different interest rates and program fees. Make sure the benefits of the refinancing program outweigh the costs.
Millennials Buying Most Homes
According to a recent report, millennials are expected to buy the majority of homes in Wyoming by 2023. Compared to the average home, they tend to be more affordable. Moreover, their purchasing power is also higher than that of older generations. Besides, the state's low unemployment rate makes it a desirable place to buy a house.
Millennials are responsible for a strong housing market in the United States. This group has accounted for the largest share of home buyers for the last decade. These buyers are typically between the ages of 22 and 40. As they start their careers and families, millennials will likely continue to purchase a large portion of homes in the future.
According to the latest census, millennials will make up about a third of the population in Wyoming. In addition to Wyoming, Millennials will purchase New York and New Jersey homes. In these states, Hicksville Union Free School District, Nyc Geog District #25 - Queens, and Island Trees Union Free School District have the highest proportion of millennial homebuyers.
