The latest information from Fannie Mae shows that 23% of Americans believe that home prices will decrease in the next twelve months. But why do about 1 in 4 people feel this way?

This feeling is mainly because of all the negative discussions about home prices in the past year. Since late 2022, the media has been spreading a lot of fear about a possible drop in prices, and these concerns are still around. You might hear people in your own life expressing worries about home prices or see influencers on social media predicting that prices will go down.

If you’re someone who still thinks prices will fall, ask yourself: Where is it more reliable to get information – sensational headlines and social media, or advice from a trusted expert in the housing market?

The answer is simple. Listen to the professionals who specialize in residential real estate.

The most reliable data available indicates that housing market experts acknowledge a slight dip in prices nationally late last year. However, this downturn was brief. The data demonstrates that prices have already bounced back this year after the slight decline in 2022 (refer to the graph below).

The positive rebound in home prices isn’t only being reported by Fannie Mae; experts from various sectors in the industry are also confirming this trend in their data. This consensus is reflected in many forecasts that now predict home prices to be on the rise this year, not declining. The graph below illustrates this perspective, incorporating the latest forecasts from each organization. 

It’s important to highlight that only a few weeks ago, Fannie Mae predicted a 3.9% increase in home values for 2023. In their latest forecast, this projection has been revised significantly, now indicating a 6.7% appreciation for the year. This adjustment underscores the high level of confidence experts have in the likelihood of positive growth in home prices this year.

If you’re under the impression that home prices are decreasing, it might be a good idea to rely on insights from experts. Their consensus is that prices are not falling; instead, they are on the rise.

Bottom Line

There has been a considerable amount of misleading information circulating about home prices in the past year, and this is still influencing people’s perceptions of the housing market today. However, it’s essential not to believe everything you hear or read. It’s crucial to rely on accurate and up-to-date information from reliable sources to form a more informed understanding of the current housing market situation. Find out why Kaya Homes is the leader in Long Island Real Estate and are your go-to realtor in the Lynbrook, Oceanside, Malverne, Hewlett, Valley Stream, East Rockaway, Woodmere, Cedarhurst, Baldwin, North Woodmere, Woodsburgh, Hewlett Neck Hewlett Harbor, Bellmore,Wantagh,Merrick and Freeport area.