In the final quarter of the previous year, several housing experts made projections suggesting an imminent crash in home prices for 2023. The media, seizing on these forecasts, disseminated headlines forecasting a bleak future for the housing market. The resultant negative news coverage instilled doubts in many about the robustness of the residential real estate sector.
If these reports prompted you to question whether you should defer your plans to move, it’s essential to understand the real scenario.
Contrary to the alarming headlines, the factual data reveals that home prices exhibited remarkable resilience, outperforming the bleak narrative portrayed by the media (refer to the graph below).
The graph, drawing on data from three reliable sources, vividly demonstrates that home prices have not only rebounded but have also experienced only marginal declines at the national level. This starkly contrasts with the crash scenario predicted by numerous articles.
The depicted declines, highlighted in red, were not severe and were, in fact, brief. As noted by Nicole Friedman, a Wall Street Journal (WSJ) reporter:
“Home prices aren’t falling anymore. . . The surprisingly quick recovery suggests that the residential real-estate downturn is turning out to be shorter and shallower than many housing economists expected . . .”
Despite some media hype surrounding home prices taking a step back, the minor correction has swiftly become a thing of the past. Essentially, this data underscores that home prices are not in decline; instead, they are on an upward trajectory.
What’s Next for Home Prices?
The consensus from experts is that home price growth will continue in the years ahead and The market is now returning to normal levels, indicating that we’ll witness continued home price appreciation, albeit at a more measured pace compared to the robust growth of the past few years – and this is indeed positive news.
Certain news sources may interpret the slowing home price growth as a sign of decline, potentially leading to stories that might mislead readers. The resurgence of such misleading headlines is already influencing the sentiments of home buyers, as evident in the Consumer Confidence Survey from Fannie Mae (refer to the graph below).
Even though the percentage of Americans anticipating a decline in home prices has been gradually decreasing this year, the recent data from Consumer Confidence indicates a recent uptick in this sentiment (highlighted in red). This shift is unexpected, given that the actual home price data demonstrates an upward trend, not a decline. It underscores the continuing influence the media holds over public opinion.
Avoid succumbing to the negative headlines and becoming part of this statistic. Keep in mind that data from multiple reliable sources consistently affirms that home prices are no longer in decline.
Bottom Line
Despite the media’s ominous tone, the data unequivocally reveals that home prices are no longer on a downward trajectory. Don’t let sensational headlines instill fear or cause delays in your plans. Let’s connect, so you have a reliable source to sift through the noise and provide you with accurate insights into what’s truly happening in our area. Your decision-making deserves information grounded in reality.
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.
Fri, 20 Oct 2023 20:51:29 +0000
by Mottek Group