8 MIN READ
August 30, 2022
By Alexandria Bova
The housing market has gone through some significant swings since the start of the pandemic in 2020. Despite a temporary lull in early 2020, the market rebounded hotter than ever in 2021. As we’ve rolled into 2022, the housing rush is simmering down just a little but not much. The median home price in January 2022 was $350,300, as compared to $356,700 from August 2021, according to the National Association of Realtors. And now, according to Zillow, the median home price is $331,533, with a predicted median of $390,546 by the end of 2023.
To figure out the value of homes in 2023 across the country, GOBankingRates analyzed median home values from February 2022 using Zillow’s forecast tool to predict the increase or decrease in home values by state to assess where home values will be in February of 2023. The study ranked each state according to its median home value, beginning with the lowest.
It is important to note that GOBankingRates used the median home value instead of the median home price by state, because value accounts for more factors, such as comparable home sales and inspections. Median home value is an estimate of what the property is actually worth, while the median list price is based on demand and listing agent.
50. West Virginia
- Median home value in 2022: $129,518
- Projected one-year growth rate: 10.39%
- Forecasted median home value in 2023: $142,975
- Home value change in year 2022-2023: $13,457
49. Mississippi
- Median home value in 2022: $157,559
- Projected one-year growth rate: 10.62%
- Forecasted median home value in 2023: $174,292
- Home value change in year 2022-2023: $16,733
48. Arkansas
- Median home value in 2022: $169,508
- Projected one-year growth rate: 13.36%
- Forecasted median home value in 2023: $192,154
- Home value change in year 2022-2023: $22,646
47. Oklahoma
- Median home value in 2022: $171,299
- Projected one-year growth rate: 13.01%
- Forecasted median home value in 2023: $193,585
- Home value change in year 2022-2023: $22,286
46. Iowa
- Median home value in 2022: $184,676
- Projected one-year growth rate: 10.38%
- Forecasted median home value in 2023: $203,845
- Home value change in year 2022-2023: $19,169
45. Kentucky
- Median home value in 2022: $188,752
- Projected one-year growth rate: 12.94%
- Forecasted median home value in 2023: $213,177
- Home value change in year 2022-2023: $24,425
44. Alabama
- Median home value in 2022: $193,601
- Projected one-year growth rate: 14.18%
- Forecasted median home value in 2023: $221,054
- Home value change in year 2022-2023: $27,453
43. Kansas
- Median home value in 2022: $198,134
- Projected one-year growth rate: 12.79%
- Forecasted median home value in 2023: $223,475
- Home value change in year 2022-2023: $25,341
42. Louisiana
- Median home value in 2022: $207,009
- Projected one-year growth rate: 8.07%
- Forecasted median home value in 2023: $223,715
- Home value change in year 2022-2023: $16,706
41. Ohio
- Median home value in 2022: $201,285
- Projected one-year growth rate: 14.67%
- Forecasted median home value in 2023: $230,814
- Home value change in year 2022-2023: $29,529
40. Indiana
- Median home value in 2022: $210,442
- Projected one-year growth rate: 14.52%
- Forecasted median home value in 2023: $240,998
- Home value change in year 2022-2023: $30,556
39. Missouri
- Median home value in 2022: $218,486
- Projected one-year growth rate: 12.94%
- Forecasted median home value in 2023: $246,758
- Home value change in year 2022-2023: $28,272
38. Michigan
- Median home value in 2022: $223,744
- Projected one-year growth rate: 14.59%
- Forecasted median home value in 2023: $256,388
- Home value change in year 2022-2023: $32,644
37. Nebraska
- Median home value in 2022: $231,115
- Projected one-year growth rate: 13.22%
- Forecasted median home value in 2023: $261,668
- Home value change in year 2022-2023: $30,553
36. Illinois
- Median home value in 2022: $255,179
- Projected one-year growth rate: 10.82%
- Forecasted median home value in 2023: $282,789
- Home value change in year 2022-2023: $27,610
35. Wisconsin
- Median home value in 2022: $252,959
- Projected one-year growth rate: 13.19%
- Forecasted median home value in 2023: $286,324
- Home value change in year 2022-2023: $33,365
34. Pennsylvania
- Median home value in 2022: $255,547
- Projected one-year growth rate: 12.68%
- Forecasted median home value in 2023: $287,950
- Home value change in year 2022-2023: $32,403
33. North Dakota
- Median home value in 2022: $271,804
- Projected one-year growth rate: 7.20%
- Forecasted median home value in 2023: $291,374
- Home value change in year 2022-2023: $19,570
32. New Mexico
- Median home value in 2022: $278,513
- Projected one-year growth rate: 13.26%
- Forecasted median home value in 2023: $315,444
- Home value change in year 2022-2023: $36,931
31. South Carolina
- Median home value in 2022: $271,002
- Projected one-year growth rate: 16.95%
- Forecasted median home value in 2023: $316,937
- Home value change in year 2022-2023: $45,935
30. South Dakota
- Median home value in 2022: $279,031
- Projected one-year growth rate: 14.59%
- Forecasted median home value in 2023: $319,742
- Home value change in year 2022-2023: $40,711
29. Tennessee
- Median home value in 2022: $276,250
- Projected one-year growth rate: 18.19%
- Forecasted median home value in 2023: $326,500
- Home value change in year 2022-2023: $50,250
28. Texas
- Median home value in 2022: $290,527
- Projected one-year growth rate: 15.29%
- Forecasted median home value in 2023: $334,949
- Home value change in year 2022-2023: $44,422
27. North Carolina
- Median home value in 2022: $297,030
- Projected one-year growth rate: 17.14%
- Forecasted median home value in 2023: $347,941
- Home value change in year 2022-2023: $50,911
26. Georgia
- Median home value in 2022: $296,056
- Projected one-year growth rate: 17.79%
- Forecasted median home value in 2023: $348,724
- Home value change in year 2022-2023: $52,668
25. Wyoming
- Median home value in 2022: $309,063
- Projected one-year growth rate: 13.45%
- Forecasted median home value in 2023: $350,632
- Home value change in year 2022-2023: $41,569
24. Alaska
- Median home value in 2022: $328,365
- Projected one-year growth rate: 7.53%
- Forecasted median home value in 2023: $353,091
- Home value change in year 2022-2023: $24,726
23. Minnesota
- Median home value in 2022: $326,253
- Projected one-year growth rate: 12.17%
- Forecasted median home value in 2023: $365,958
- Home value change in year 2022-2023: $39,705
22. Delaware
- Median home value in 2022: $333,809
- Projected one-year growth rate: 14.61%
- Forecasted median home value in 2023: $382,578
- Home value change in year 2022-2023: $48,769
21. Vermont
- Median home value in 2022: $342,217
- Projected one-year growth rate: 12.74%
- Forecasted median home value in 2023: $385,815
- Home value change in year 2022-2023: $43,598
20. New York
- Median home value in 2022: $352,611
- Projected one-year growth rate: 12.97%
- Forecasted median home value in 2023: $398,345
- Home value change in year 2022-2023: $45,734
19. Maine
- Median home value in 2022: $339,212
- Projected one-year growth rate: 18.29%
- Forecasted median home value in 2023: $401,254
- Home value change in year 2022-2023: $62,042
18. Virginia
- Median home value in 2022: $362,633
- Projected one-year growth rate: 12.47%
- Forecasted median home value in 2023: $407,853
- Home value change in year 2022-2023: $45,220
17. Connecticut
- Median home value in 2022: $360,948
- Projected one-year growth rate: 14.48%
- Forecasted median home value in 2023: $413,213
- Home value change in year 2022-2023: $52,265
16. Maryland
- Median home value in 2022: $399,585
- Projected one-year growth rate: 12.36%
- Forecasted median home value in 2023: $448,974
- Home value change in year 2022-2023: $49,389
15. Florida
- Median home value in 2022: $373,735
- Projected one-year growth rate: 22.04%
- Forecasted median home value in 2023: $456,106
- Home value change in year 2022-2023: $82,371
14. Rhode Island
- Median home value in 2022: $418,342
- Projected one-year growth rate: 16.82%
- Forecasted median home value in 2023: $488,707
- Home value change in year 2022-2023: $70,365
13. New Hampshire
- Median home value in 2022: $428,187
- Projected one-year growth rate: 16.31%
- Forecasted median home value in 2023: $498,024
- Home value change in year 2022-2023: $69,837
12. Montana
- Median home value in 2022: $426,273
- Projected one-year growth rate: 17.76%
- Forecasted median home value in 2023: $501,979
- Home value change in year 2022-2023: $75,706
If you’re a prospective homebuyer, you’re likely in a tough spot. While you may be tempted to wait for interest rates to drop, if you wait too long, you could be dealing with a surge in home prices.
In a recent Fox Business interview, real estate entrepreneur and “Shark Tank” star Barbara Corcoran shared her prediction for when home prices will rise, how much she expects them to increase and more.
Lower Interest Rates Will Mean Higher Home Prices
We’re currently experiencing a “bottleneck” in the real estate market, Corcoran said, but this won’t last forever.
“Sellers don’t want to move from their apartment or their home because they don’t want to take on higher interest rates,” she said, “and buyers are too afraid [to buy] because they are getting less house [for the price]. So you’ve got a standoff going on. But things are changing.”
Corcoran believes there will be a major swing in the real estate market as soon as interest rates drop.
“The minute those interest rates come down, all hell’s going to break loose and the prices are going to go through the roof,” she said. “[Right now sellers are] staying put. But they’re not going to stay put if interest rates go down by two points.
“It’s going to be a signal for everybody to come back out and buy like crazy, and the house prices [will likely] go up by 20%,” she said. “We could have COVID [market] all over again.”
Home Prices and Market Trends Will Continue To Vary Greatly Geographically
Although a recent report found that home prices experienced their first annual decline in 11 years, Corcoran noted that has not been the case everywhere in the U.S.
“In the coastal areas, prices are going down because houses are just so not affordable,” she said. “But if you look in the Southwest, prices are going up. You have some cities where prices are rebounding by 20% in six months.”
Another area where prices will continue to rise is South Florida.
“[Home prices in South Florida] are still going up, and it’s one of the hottest markets,” Corcoran said. “People love Florida, and people are paying anything. I don’t get it — it’s not my cup of tea — but it’s doing very, very well.”
Don’t Expect a Major Housing Market Crash
Although we are facing a precarious real estate market, Corcoran said we won’t see a catastrophic housing market collapse like the one that occurred in 2008, due in large part to the subprime mortgage crisis.
“People [have] their hard-earned cash in the market — people aren’t overleveraged,” she said. “There’s really no comparison to now compared to what came before.”
The Commercial Real Estate Market Will Be Very Slow To Recover (If It Ever Does)
Corcoran views the residential and commercial real estate markets as separate entities, and so a recovery of one does not mean there will be a recovery in the other. She believes it could be a long time before commercial real estate rebounds.
“No one has the confidence to buy [commercial real estate] now,” Corcoran said. “No one really believes it’s going to turn the corner. People are staying home. Our best offices in midtown Manhattan are 50% occupied, and in most major cities, and even secondary cities, we have a 20% vacancy rate. No one wants to take that chance. I don’t see that turning around. I think it’s going to be a bit of a bloodbath before it gets better.”
*Author: Gabrielle Olya
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