Home Prices are not falling
Some housing experts predicted that home prices would crash in 2023 during the fourth quarter of last year. Media headlines sounded the alarm about the housing market. Home Prices Never CrashedDisregard headlines. Actual data shows that home prices are remarkably resilient, and have performed better than media would have you think (see graph below).:This graph uses three trusted sources to clearly demonstrate prices have already recovered after only experiencing slight declines nationwide. This is a far cry away from the crash that so many articles predicted. The declines (shown in RED) were not drastic, but they were short-lived. Nicole Friedman is a reporter for the Wall Street Journal. She says, “Home prices aren’t falling anymore.” . . The surprising rapid recovery indicates that the downturn in residential real estate is shorter and shallower than many economists had expected. . “Even though media coverage made a big fuss about home prices pulling back in recent months, the slight correction has already happened. What’s next for home prices? Experts agree that home price growth is expected to continue in the coming years and will return to normal levels. This means that home prices will still rise, but at a slower rate than in the past few years. Homebuyers are already feeling the impact of misleading headlines. The Consumer Confidence Survey from Fannie Mae shows how this has affected the general opinion. While the percentage of Americans that think prices will drop has been slowly decreasing this year, the most recent Consumer Confidence data shows that this has ticked up recently (shown as red). This is a surprising change, especially when you consider that the data on home prices shows that prices are rising and not decreasing. This shows the influence the media has on public opinion. Don’t be swayed by negative headlines. Bottom LineEven though media may make it sound like things are bleak, the data shows that home prices haven’t fallen in recent years. Don’t let headlines scare or delay you. You can rely on a real-estate professional to help you cut through the hype and find out what’s happening in your locality.
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