Dallas expected to be one of Zillow's hottest markets in 2023

The Dallas-Fort Worth area will be one of the top five housing markets in 2023, according to analysis from Zillow.

Driving the news: Dallas is fourth on Zillow's new list of 2023's hottest markets, slotted between Pittsburgh and Nashville.

The big picture: While high mortgage rates are cooling housing markets across the country, North Texas is expected to navigate the slowdown better than most regions, in part because our prices are still below most of the other large markets.

• That means buyers are still buying and home values are still likely to grow — though much more gradually than the last three years.

Zoom out: Charlotte tops the list, with Cleveland second. Jacksonville, Kansas City, Miami, Atlanta, and Philadelphia round out the top 10.

• Austin, 2021's hottest market, has fallen to 29th on the list, in large part because it now ranks among the country's most expensive larger cities, per Zillow.

The other side: San Jose, Sacramento, Minneapolis, and Denver are expected to be the coolest housing markets in 2023, according to Zillow.

What they're saying: "This year's hottest markets will feel much chillier than they did a year ago," Zillow economic data analyst Anushna Prakash said in a statement.

• "Markets that offer relative affordability and room to grow are poised to stand out."