Expert Home Price Forecasts Revised for 2023
There were several headlines at the end of last season that predicted a significant drop in home prices by 2023. This led to fears and questions as to whether the 2008 housing crash would be repeated. The headlines were wrong. While there was a slight correction in home prices after the sky-high appreciation during the “unicorn” years, home prices did not crash. Expert Home Price Forecasts: Now and ThenThis visual shows the forecasts for 2023 home prices from seven organizations. It shows the original 2023 predictions (released late in 2022) of what home prices would be by the end this year, and their most recent revised 2023 estimates (see chart below). If you look at the right-hand column, all experts have updated the projections they made for the end of the year. They now expect prices to be either flat or to have positive growth. There are many reasons why home prices have been so resilient. Odeta Kush, Deputy Chief economist at First American, said: “One thing is certain, having long-term fixed-rate debt protects homeowners from shock payments, acts as inflation hedges – your main household expense does not change when inflation increases – and is one reason why home values in the U.S. remain sticky on the downside.” This is because they will misunderstand the seasonality of home price appreciation. As the housing market slows down at the end this year, home price growth will also slow. This is a common occurrence. This does not mean that prices are falling, but they are not increasing as fast as they did during the peak of the homebuying season. Media coverage at the end last year predicted a significant drop in home prices. This did not happen. Connect with a real-estate agent to get reliable data and help you separate the truth from the fiction.
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