Are you considering a move? If the prevailing talk of a housing market crash has you second-guessing, take a breath. Contrary to the predictions, home prices are not on a downward slide and are poised to wrap up the year on a strong note.
Despite the buzz about potential drops of 5%, 10%, or even 20%, the reality is that such declines haven’t materialized. The primary factor at play is the limited supply of homes for sale—more buyers are seeking homes than what’s available, preventing prices from taking a nosedive.
To dispel any doubts about this year’s housing market, let’s delve into the latest 2023 forecasts from various experts.
The Consensus: Positive Home Price Trends in 2023 The prevailing opinion among industry experts is that home prices will experience positive growth in 2023. A glance at the graph below, featuring year-end forecasts from six different organizations, underscores this optimism:
With all but one projection indicating positive national price trends, it’s evident that the majority is upbeat about home price appreciation.
If you’re concerned about the lone red bar suggesting an overall price drop for the year, consider this: the National Association of Realtors (NAR) foresees only a slight decline, not the substantial crash predicted by sensational headlines. Furthermore, when averaging all six forecasts, the expectation is a net positive growth of approximately 3.3% for the year.
And in case these six organizations aren’t sufficient to allay your fears, here’s an additional point to ponder. One of the forecasts in the graph is the Home Price Expectation Survey (HPES) from Pulsenomics. This survey aggregates responses from over 100 economists, investment strategists, and housing market analysts, all pointing to an average growth of 3.3% for the year.
Looking at the graph again, you’ll notice the blue average aligns with these forecasts at 3.3%. While individual predictions may differ, both the HPES survey and the overall average convey the same message: a 3.3% appreciation, a far cry from a scenario of falling prices.
In Conclusion If worries about a housing market downturn are plaguing you, trust the experts. According to the collective wisdom of the latest forecasts, home prices are set to exhibit positive growth this year. If you have queries about the specific dynamics in your area, consider reaching out to a real estate agent for insights.