Is the Hampton Roads Housing Market Going to Crash in 2023?

If you’ve been following the housing market lately, you may have heard that the market is going to crash in 2023, but is there any truth to these bleak predictions? In actuality, there might not be anything to worry about! Today, let’s look at some of the reasons why a crash may be unlikely to happen this year.

  • A Bubble That’s About to Pop?
  • Is it Time to Sell?
  • How a Market Crash Could Happen in Hampton Roads
  • What You Can Expect

A Bubble That’s About to Pop?

Many have referred to the recent rise in real estate market value as a “bubble,” implying (misleadingly) that the housing market has been growing and will suddenly “pop” in the future, creating a massive downward crash in the market.

Since home prices in the Hampton Roads area have been much higher than they normally should be, homeowners have been understandably worried about this “pop” and preparing themselves for it. However, while so many people are predicting a crash, this is just speculation, and past trends indicate that a crash may not happen. Rather, what you should really be preparing for is a gradual decline in Hampton Roads real estate prices.

Is it Time to Sell?

While lower prices may be a great situation for buyers to find themselves in, sellers and real estate agents will prefer a market with higher prices. Right now, because there are so few homes on the market, competition in Hampton Roads is high, and lower-priced houses will stand out among the higher prices, getting offers very quickly. The main takeaway is: if you’re thinking about selling your home this year, there is no better time than right now. Get your home up for sale and on the market while demand for homes is high and prices are higher than they will be in the coming months.

How a Market Crash Could Happen in Hampton Roads

Even though it’s safe to assume a crash won’t happen in 2023 and a gradual price decline is more likely, no one can say for certain how the housing market will change, and it’s good to be prepared for anything—including the unlikely. Given the right conditions and circumstances in the right combination, an unexpected Hampton Roads market crash could occur. Let’s review a few of the factors which contribute housing market’s instability and could indicate a crash will happen:

Buyer Demand and Motivation:

Arguably, the two most important aspects of tracking the housing market in Hampton Roads are demand and motivation. After all, if buyers aren’t buying houses, the housing market wouldn’t exist at all. So, if the public’s demand and motivation to buy houses started to drop suddenly, it would be bad for the housing market as a whole, and prices could drop quickly.

High Unemployment Rates:

Although gradual rises in unemployment won’t have a large effect on the market, a sudden and substantial increase in unemployment rates could spell disaster. If a great number of people are without jobs, they may frantically try to sell their houses, and foreclosure numbers could rise.

Homebuilding:

When it is thriving, homebuilding leaves more desirable houses on the market. However, during the Coronavirus pandemic, the rising prices of materials meant builders were struggling and facing an increased difficulty in getting building permits. These combined factors can lead to a shortage of homes for sale, which causes prices to rise as they have recently. We are already expecting a continuation of this slow progress in the new-home market in 2023.

What You Can Expect

Moving forward in 2023, you should expect to see a gradual decline in prices in the Hampton Roads housing market. While this may sound less than ideal, it is nowhere near the dramatic downward crash that people have been panicking over! Prices have skyrocketed recently and will simply be sinking back to a more appropriate market value as 2023 progresses.

If you’re thinking of selling your home or buying a new one, there is no one better to help you than Reynolds EmpowerHome Team. We’ve helped thousands of families through dramatic market shifts, and we have decades of experience navigating the changing markets, so you can rest assured that we can get your home sold regardless of whatever the 2023 markets have in store. Most sellers last year had to call a second or third agent to get the job done, or even worse, not sell at all. The agent you hire the first time matters! Our team sells 98% of our listings the first time, so when you hire us, your home is more likely to sell fast & for top dollar! 

Call or Text us now at 804-486-7388 to start working with a team that will help and support you every step of the way!

Your Home SOLD for 100% of the Asking Price or We Will Pay You the Difference.* No Gimmicks! Visit us HERE for more information.