Considering a change in your housing situation? If you've been concerned about potential home price drops this year, take comfort in the data and expert opinions. Home prices are not plummeting; they are expected to end the year on a positive note.
Despite hearing predictions of a potential 5%, 10%, or even 20% price decrease this year, this hasn't materialized. The primary factor behind this is the inadequate supply of homes for sale. With more buyers in the market than homes available, prices have remained stable.
The majority of experts anticipate that home prices will show a positive increase this year.
The prevailing view among industry professionals is that there will be a favorable increase in home prices for 2023. The chart provided below illustrates the most recent year-end predictions for 2023 from six different organizations.
You can observe that this year, the vast majority of projects across the nation are expected to yield positive prices. This is noteworthy as it indicates a prevailing optimism regarding the growth of home prices.
If you're concerned about the single red bar indicating a yearly price drop, consider the following: According to the National Association of Realtors (NAR), their projection anticipates only a minor decline. This doesn't align with the major crash that some headlines predicted. Additionally, when you average all six forecasts, the consensus suggests that prices will likely show around 3.3% positive growth for the year.
If these six organizations don't guarantee that prices won't experience a significant decline, here's another factor to consider. Among the six predictions illustrated in the graph is the Home Price Expectation Survey (HPES) by Pulsenomics, which aggregates responses from more than 100 economists, investment strategists, and housing market analysts. According to HPES, the consensus among these 100 experts is a projected price growth of 3.3% for the year.
By revisiting the chart above, you'll observe that the average forecast in blue remains consistent at 3.3%. While individual predictions may differ, the HPES survey and this forecast average align with the same outlook. A 3.3% appreciation represents a stark contrast to declining prices.
Bottom Line
If concerns about a potential decline in home prices in the current year trouble you, allow the insights from experts to provide reassurance. Please let us know if we can answer any questions or concerns, and reach out anytime to help you navigate today’s market.
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