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Contemplating a move in the near future? You might have found yourself caught in the whirlwind of rumors about a looming crash in home prices. It's only natural to feel a tad apprehensive when such speculations are afoot. However, let's turn to the data and the insights of experts to put your mind at ease. The reality is that home prices aren't spiraling downward; in fact, they're poised to finish the year on a strong note.

Despite the chatter that property values would plummet by 5%, 10%, or even 20% this year, that scenario has failed to materialize. The primary reason behind this is the persistently low supply of homes for sale. There's an overwhelming number of eager buyers in the market, but the available housing inventory can't keep up with the demand, effectively preventing a widespread decline in prices.

To reassure you that 2023 isn't a lost cause for home prices, let's turn to the latest forecasts from a range of experts:

Optimism Reigns in the Housing Market

The collective sentiment among industry experts is that home prices will, in fact, appreciate in 2023. Consider the latest year-end forecasts for 2023 from six different reputable organizations:

As you can see, all but one of these forecasts project positive price growth for the nation this year. This is significant as it underscores the overall optimism regarding the future trajectory of home prices.

Now, if that one red bar forecasting a slight overall price decrease for the year still raises concerns, it's important to put it in context. The National Association of Realtors (NAR) predicts only a modest decline – far from the dramatic crash that some headlines had anticipated. Furthermore, when we average all six forecasts together, the consensus indicates that home prices are likely to see approximately 3.3% positive growth for the year.

But if the combined wisdom of these six organizations hasn't quite quelled your doubts about a potential price tumble, consider this additional perspective: one of the six forecasts represented in the graph is the Home Price Expectation Survey (HPES) by Pulsenomics. This survey synthesizes insights from over 100 economists, investment strategists, and housing market analysts. The HPES reports an average growth rate of 3.3% for the year, aligning closely with the blue average in the graph above. This convergence of data from various sources emphasizes a common narrative – one of home price appreciation, not depreciation.

In sum, a 3.3% appreciation in home prices tells a vastly different story than the anticipated price declines. The real estate market, though dynamic, is showing resilience and promise for buyers and sellers alike.

Didiayer Snyder

Posted by Didiayer Snyder on


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