What Will Happen to Home Prices in 2023?

Home prices have been a hotly debated topic over the last year. Some have predicted a massive drop in prices and that this will be a repeat of 2008, which has not occurred. Others predict that the real estate market will either appreciate or depreciate slightly, depending on where you live in the country. And, as the spring real estate market approaches, experts continue to forecast what they believe will happen to home prices this year and beyond.

Selma Hepp, Chief Economist at CoreLogic, says:

“While 2023 kicked off on a more optimistic note for the U.S. housing market, recent mortgage rate volatility highlights how much uncertainty remains. Nevertheless, the continued shortage of for-sale homes is likely to keep price declines modest, which are projected to top out at 3% peak to trough.”

Additionally, every quarter, Pulsenomics surveys a panel of over 100 economists, investment strategists, and housing market analysts regarding their five-year expectations for future home prices in the United States. Here’s what they said most recently:

So, given this information and what experts are saying about home prices, the question you might be asking is: Should I buy a home this spring? Here are three reasons you should consider making a move:

1. Buying a home helps you escape the cycle of rising rents. Over the past several decades, the median price of rent has risen consistently. The bottom line is, rent is going up.
2. Homeownership is a hedge against inflation. A key advantage of homeownership is that it’s one of the best hedges against inflation. When you buy a home with a fixed-rate mortgage, you secure your housing payment, so it won’t go up like it would if you rent.
3. Homeownership is a powerful wealth-building tool. The average net worth of a homeowner is $255,000 compared to $6,300 for a renter.

Experts say that home prices will go down a little bit this year, but then they will keep going up steadily. Given this, you may be wondering whether you should buy a home this spring. The decision to buy a home is best made when you have all of the facts and an expert on your side.

Bottom Line

To make the most informed decision about your next move, contact a local real estate professional.