NEW YORK - As the fall of 2022 comes to a close; it's time to assess the future of real estate in Albany, NY. While the city's rental market is hot now, it could be a different story by 2023. There's a lack of supply, which is keeping demand high. However, the growing number of affluent renters and the growing popularity of remote work may mean that prices will start to moderate.
While mortgage rates may remain low, the price appreciation trend in 2023 will probably slow. As a result, speculators may be less inclined to invest in real estate. Regardless, construction may increase, easing competition for houses for sale. Nonetheless, a market crash in 2023 could be very painful.
If housing demand does increase and construction increases, home prices will decrease. This would be a good thing for buyers. Despite the supply shortage, the number of people looking to buy a home remains high. Home prices may fall slightly, but they may not drop as much as in 2008 due to the lack of available housing.
Moody's Analytics reports that U.S. home prices will increase by 0% in 2023, compared to a 19.7 percent increase in 2022. While the trend is positive in New York, there are several cities in the country that will experience major price changes in 2023. For example, prices in Casper, Wyo., will drop by 5.52% by 2023, and in Albany, home prices will fall by 6.96 percent.