What the experts are saying about home prices in 2023.
A little background first. We have had 124 months of positive home price growth spanning from 2012 until about the last quarter of 2022.
However, in the last few months, home prices have declined by about 2.4%. that is the 2nd largest home price correction since world war 2. But to put that in perspective the largest decline was during the market crash of 2008 to 2012 which was a decline of 26%.
So lets take a look at what the experts think.
Realtor dot com predicts a home price appreciation of 5.4% in 2023 with the Home Price Expectation Survey projecting a 2.6% appreciation in home pricing, the National Association of Realtors predicts a 1.2% increase along with the Mortgage Bankers Association predicting a .7% increase in home prices.
Freddie Mac, Fannie Mae, and Zelman all predict a decline in home prices in 2023 ranging from a drop of .2% to a 5.1% drop by Zelman. If we average all of those, we still get a price appreciation of .4%.
A few other experts not on this chart are Zillow and Redfin, both huge compilers of real estate market data. Zillow predicts a 2.4% increase in home value in 2023 while Redfin predicts a drop in prices of up to 4%.
With so much uncertainty in the real estate market, what are you supposed to do? First if you are thinking of buying or selling talk to a local expert. Talk about what all of the mixed data might mean for you and work out a plan that is right for your family’s budget and housing needs. Even if you think it may be a few years before it’s right for you, have a talk with a trusted real estate advisor and map out your long-term plan.
If you have any questions about buying, selling, or investing in residential real estate contact me so I can help.
Bye for now.