Are you thinking about making a change? If this is the case, all of the hype about home values crashing this year may make you hesitant to make a purchase. Allow the numbers and experts to comfort you. Prices are not declining, and the year will conclude strongly.
Despite reports that expenses will fall by 5, 10, or even 20% this year, this has not transpired. The primary cause of this is a scarcity of available properties for sale. There are just more individuals looking to buy than there are available houses, which has kept prices from falling.
Consider the most current 2023 estimates from a range of experts to illustrate that this year was not a bust for property values.
Most Experts Project Home Prices Will Net Positive this Year
According to industry analysts, house price appreciation will really be positive in 2023. The graph below depicts the most recent year-end estimates for 2023 from six separate organizations:
As you can see, all but one project's national prices will be positive this year. That’s significant because it shows the majority are optimistic about home price growth.
If you’re still worried about the one red bar that shows an overall price drop for the year, think about this. The projection from the National Association of REALTORS®️ (NAR) is for only a slight decline. It’s not the big crash all the headlines called for. Plus, if you average all six forecasts together, the expectation is that prices will net somewhere around 3.3% positive growth for the year.
If these 6 organizations aren’t enough to convince you that prices won’t come tumbling down, here’s something else to consider. One of the six forecasts represented in the graph is the Home Price Expectation Survey (HPES) from Pulsenomics. It combines survey results from over 100 economists, investment strategists, and housing market analysts. The HPES found that the average of all 100 of those experts was 3.3% price growth for the year.
Looking back to the graph above, the blue average for the forecasts in this graph is similarly 3.3%. Individual estimates may differ, but the HPES poll and its average indicate the same projection. And a 3.3% increase tells a very different narrative than prices decreasing.
Bottom Line
If you're worried that property prices will fall this year, let the experts reassure you. Housing prices are expected to grow this year, according to the most current predictions. Let's discuss if you have any questions about what's going on with home prices in our are
