Expert Predictions on Home Prices in 2023
Are you considering making a move? If this is the case, all of the talk about home prices collapsing this year may have you on edge about your decision. Allow the statistics and the professionals to reassure you. Prices are not falling and will end the year strongly.
Even though you may have heard that costs will drop by 5, 10, or even 20% this year, this has not occurred. The main reason for this is a lack of available homes for sale. There are just more people eager to purchase than there are available properties, which has kept prices from decreasing.
To demonstrate that this year was not a bust for home prices, consider the most recent 2023 forecasts from a variety of specialists.
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 at the graph above, you can see that the blue average for the forecasts in this graph is similarly 3.3%. While individual estimates may differ, the HPES poll and its average reflect the same projection. And a 3.3% increase is a very different narrative than prices decreasing.
If you're concerned that house prices will decline this year, let the experts soothe you. According to the most recent projections, housing prices will actually rise this year. Let's talk if you have any queries regarding what's going on with housing prices in our neighborhood.