Only a couple of months ago, aspiring homeowners were facing stiff competition for the limited number of properties on the market and dealing with soaring home values. Currently, sellers are quickly lowering asking prices and going above and beyond to entice potential buyers.
This significant reversal is largely attributable to the steep rise in interest rates, which has made buying a home a very costly endeavor and discouraged would-buy homebuyers from committing to transactions. This has understandably resulted in a decline in overall home sales and prices, but the number of available homes on the market has gone up considerably.
It’s not all bad news as we turn our focus to 2023. There is still plenty of viable investment opportunities for investors looking to diversify their portfolios and increase their profit margins—you just have to know where to look and be especially disciplined when executing your investment strategy. Accordingly, the team at Gauntlet Funding has conducted thorough market research to identify the specific geographic markets that are poised to excel in terms of revenue generation in the near future. Here’s a closer look into the hottest markets for the upcoming year so you can get started on developing your plans for a profitable 2023 and beyond.
Incredibly, Hartford seems to be the exception to what has been a collective slowdown of the national real estate market. Situated approximately 90 miles southwest of Boston and 150 miles northeast of New York City, the capital city of Connecticut has experienced steadily increasing home values and a limited amount of inventory over the past year. The local economy is strong and diversified, with major corporate entities like Aetna, Cigna and more choosing Hartford for their headquarters offices. Accordingly, the population is steadily increasing as talented workers are drawn to the numerous employment opportunities that the city has to offer. The average home for sale in Hartford receives between three to five offers and go for a median of between 3% to 5% over the asking price. The market conditions make this city an ideal location for fix-and-flip investment properties, as the median home price is still relatively affordable, and demand has remained consistently high.
Positioned in the western region of Texas near the Mexico border, El Paso is a vibrant urban community with a strong military presence as it is the home of the major Army installation Fort Bliss. The constant influx of soldiers provides a notable stimulus to the local economy and ensures that the real estate market remains extremely active. Home values are projected to rise by 5.4% over the course of 2023, a healthy appreciation rate that will benefit any investment portfolio. With the average home value sitting at $290,500, El Paso is a relatively affordable option for investors operating on a limited budget searching for a promising return on investment. All market dynamics point to El Paso performing at an above-average rate for the foreseeable future, making it a great option to snap up an investment asset.
The most populated city in the state of Kentucky—and home to the dynamic duo of the Kentucky Derby and Kentucky Fried Chicken—Louisville has quickly become one of the premier manufacturing hubs in the southeastern United States. The resultant employment opportunities combined with the extremely affordable cost of living have prompted a surge of new residents to the area—all of whom are in need of housing options. Almost 50% of all new homebuyers in 2022 hailed from other states based on data from Realtor.com, a trend that is expected to continue in the coming year due to the rise in telework and a widespread preference for more square footage at a lower price point—a commodity that Louisville has in droves.
Ready to make 2023 your most successful yet? Look no further than Gauntlet Funding. Our team of experts prides themselves in crafting innovative financial solutions for every size and type of investment venture. We have the experience to offer you valuable insights to help you fine-tune your investment strategy to optimize profits and the resources to ensure you can quickly tap into the capital you need to close transactions quickly without having to worry about excessive paperwork and delays. Contact us today to learn more about how we can set you up for success this year and beyond!