Housing market approaching 2023: Experts say “price increases will slow down”

COLLEGE STATION, Texas (KBTX) -If you’ve been paying rent or have owned a home in the last two years, chances are you’ve felt the pain in your wallet. Although, experts say there may be some silver lining in 2023 for the housing market in Bryan-College Station.

Curtis Davis, the owner of Aggieland Apartment Finders, has been involved in the real estate industry since 2006. He says this year, prices have risen like never before.

“The prices are higher than we’ve ever seen in all my years,” said Davis. “I mean COVID-19 happened. A lot of things changed.”

Although, high prices haven’t stopped Davis’ customers from stopping by his business.

“Today I had four showings. People are coming in to look at rentals and homes sooner than later before the new year because you can’t wait until the last minute like May or June for instance. You won’t find anything then. It’s competitive out there,” he said.

Davis said with a growing population comes a growing demand for all types of housing in Bryan-College Station.

“Single-family houses have gone up from anywhere from $1,500 to $1,800. As far as rentals, one to two bedrooms seem like they are going up $100 to $250,″ Davis said.

Experts report the demand for new homes in our area isn’t as high as it was two years ago. Adam Perdue, an economist at the Texas Real Estate Research Center, says he predicts a brighter future for the housing market in the upcoming months.

“Price increases will slow down, both for rent and house prices, from what they’ve been in the last two years,” said Perdue. “Which is an easy prediction because it has already been doing that.”

One main factor in flattening rent and housing prices are contributed to interest rates, according to Perdue. He said looking at this year’s interest rates compared to 2020, consumers have lost more than 50% purchasing power.

“That’s going to be the big driver for the housing market for the next year or two because it’s all how the Fed’s handle the situation, the inflation rates,” said Perdue.

Perdue explained there is one question remaining: just how much will costs level out?

“Do we return to the typical increases on home prices and rents that we see in Texas or is it a bit lower? Or even a negative because we got so high over the past two years,” said Perdue.

For more information on Aggieland Apartment Finders, click here.

Click here, for information on the Texas Real Estate Research Center.

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