While a new year can ignite motivation for a big change, those looking to move in 2023 should think twice about where they choose to settle down.
Redfin chief economist Daryl Fairweather told Fox Business which locations he thinks are the best and worst places to move in the new year, based on where homes will retain their value and thus be the better investment.
Fairweather named Austin, Phoenix, and Las Vegas, as particularly risky investments due to the likelihood of home price drops in the near future.
“If you want to avoid a situation where you buy a home, and then it goes down in value over the next couple of months, I would avoid the Sun Belt,” Fairweather told Fox Business.
Related: Homebuyers Are Backing Out of Purchases in This Area of the Country More Than Anywhere Else In The U.S.
Still, it doesn’t mean it’s all downhill for the Sun Belt. Fairweather said the area should rebound eventually, but those locations might be riskier in the short term.
“Even though it may be a little bit overinflated now, there’s going to continue to be strong demand for those places in the long run,” she told the outlet.
Related: Are You Planning to Buy a Home? Read This First.
As for the safest options, Fairweather advises the Midwest and Northeast, as those areas “tend to retain their value.”
She added that Lake County, Illinois; Albany, New York; New Haven, Connecticut; and Milwaukee and Chicago are generally safe investments for both the short- and long-term.
Related: The Real Estate Housing Market Is Shifting: Too Many Homes, Not Enough Buyers