Higher mortgage rates, waning supply, and still-high home prices are forcing homebuyers to reconsider their purchasing plans, and even those in the luxury market aren’t immune to the consequences of a housing correction. The mid-pandemic trend of upsizing appears to be reversing in 2023, and instead, affluent buyers are purchasing smaller properties for their second homes, the National Association of Realtors reports.
Also, buyers who rushed into home purchases throughout the last several years are increasingly expressing dissatisfaction with their new homes, especially as many adjust to new lifestyle changes post-pandemic.
International real estate transactions are back on the rise as foreign buyers eye U.S. housing—and Americans target destinations overseas. About 92% of U.S.-based respondents say they’re considering purchasing a property abroad. A strong U.S. dollar, the rising cost of living and surging home prices are among the top reasons driving interest in real estate overseas.
Higher interest rates over the last few months have promoted buyers to seek alternative financing methods. The wealthy are leveraging more cash in real estate transactions.