Me, worry?

Plus, 'This ain't meant for people who don't already have money.'

͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌  December 17, 2022 | Issue #72

Good morning! This week we’re talking about home values, housing markets to watch in 2023 and Congressman-elect Maxwell Frost's apartment rental woes.   Me, worry? Sam Island for Money As Aly J. Yale put it in her latest story for Money: “The housing market has been kind to homeowners these last few years.” Very kind, in fact. Since 2019, the average home value has jumped 43%. Meanwhile, the average American homeowner gained $60,000 in home equity just last year. Recently, however, inflation and high mortgage rates have put a pin in all that. Sales are slowing and prices have begun to decline on a month-to-month basis. Looking ahead, most experts agree that home prices are likely to fall further in 2023. In other words, boom times are over for homeowners and sellers. But just how much the slowdown will hurt will depend on several factors.  Of course, a softer market is not great news if you want to sell. Though, when you bought the place may determine the impact. If you bought before the pandemic, you’ll probably still make money, just not as much as you might have if you sold sooner. And if you’re planning to stay awhile longer? A lower home value could actually shave a bit off your home insurance and property tax bills in the future.  As Jessica Peters, a real estate broker with Douglas Elliman, told Aly: “Prices will trend downward, but that doesn’t necessarily mean doom and gloom.” For more: Your Home May Lose Value in 2023. Should You Worry?   Notice a trend? Lynsey Weatherspoon for Money Where should you live if you want strong job opportunities, population growth and ample housing stock? According to the National Association of Realtors, the places to watch in 2023 include: Atlanta-Sandy Springs-Marietta, Georgia Raleigh, North Carolina Dallas-Fort Worth-Arlington, Texas Fayetteville-Springdale-Rogers, Arkansas-Missouri Greenville-Anderson-Mauldin, South Carolina Clearly, NAR is betting on mid-sized Southern cities. As my colleague Sarah Hansen noted: “Southern cities attracted lots of new transplants during the pandemic as homebuyers sought out more space and lower living costs.” For more: These Are the Top 10 Housing Markets for 2023, According to Economists Plus: You may recall, Atlanta also ranked first on Money’s 2022 list of the Best Places to Live.   ‘This ain’t meant for people who don’t already have money.’ Maxwell Frost — the 25-year-old congressman-elect from Orlando, Florida — was denied a D.C. apartment because of his low credit score. Last week, Frost tweeted: He went on to explain that he quit a full-time job before his primary race and had to go into debt in order to live. According to NPR, Frost originally planned to couch-surf for his first few months in D.C. but found an apartment he could afford (even before getting his first congressional paycheck in February). Things clearly didn't go as hoped. In his tweet thread, Frost acknowledged that as a soon-to-be well-paid member of Congress, he’ll be fine. His credit will recover. But his story points to a larger issue: Landlords regularly use credit checks in the tenant approval process. However, research has shown that this system preserves racial disparities. Plus, a recent CFPB report showed that errors in tenant background checks regularly keep people from finding affordable, quality housing.   BTW There’s an oversupply of short-term rentals. One reason? Homeowners, many who don’t want to give up low mortgage rates, are renting out their homes instead of selling. In 75 of the 100 largest cities in America right now, a household earning the local median income could not comfortably afford a median-priced home . According to Zillow, Santa Claus' home and state-of-the-art toy workshop has seen a nearly 12% increase in value since last year. Current value: $1,154,137.   Happy hunting, P.S. Share your real estate questions with me on Twitter @samsharf or via email at sam.sharf@money.com. P.P.S. Have a friend who loves real estate or is looking for a home of their own? Please forward them this email or send them to the Money Moves subscription page.   Money’s Essential Home Buying Resources: Fall 2022 On the hunt? Check out Money’s Mortgage Calculator, list of The Best Mortgage Lenders and look at the latest mortgage rates. Thinking of refinancing? Our list of The Best Mortgage Refinance Companies can help. You can also use our Mortgage Refinance Calculator or these refi tips. Key question: How much house can I afford?   This newsletter is free because Money earns a commission when you click or make purchases from the links in this email and on our site. We also receive compensation for some of the products and services featured in this message. Offers may be subject to change without notice. Learn more about how we make money. 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