As the housing market cools in response to the dramatic rise in mortgage rates, home price appreciation is cooling as well. And if you follow the media headlines, you’re likely to see dozens of calls for everything from falling home prices to continuing to rise. But what is true? What is most likely to happen? Opinions vary, but the most likely outcome is somewhere between a slight uptick and a slight down tick.
Here we take a look at the latest expert forecasts to ensure you have the best information possible today. What Experts Say about Home Prices Next Year the following chart shows the latest predictions by his five experts in the housing industry. These are the experts who last updated their forecasts based on recent market trends.
As the graph shows, the three blue bars represent experts calling for ongoing home price appreciation, but at a slower pace than in recent years. The red bars on the chart are experts calling for cut in house prices.
There is no clear consensus, but if we take the average of all five of these projections (shown in green), the most likely outcome is that national house prices will remain roughly flat next year.
What does that mean?
Basically, experts are divided on what’s ahead for 2023. Home prices are likely to fall slightly in some markets and continue to rise in others. It all depends on local market conditions. Like how overheated this market has been in recent years, current inventory levels, buyer demand, etc.
The good news is that house prices are expected to return to normal rising levels fairly quickly. Wells Fargo’s latest forecasts show that prices are expected to fall in 2023, but are expected to recover and turn positive in 2024. The forecast sees a rise of 3.1% in 2024. This is a number that is more in line with long positions (an average increase of 4% per year). The Pulsenomics Home Price Expectations Survey (HPES), a survey of more than 100 industry professionals, also calls for a steady increase in value of about 2.6% to 4% from 2024 to 2026. s Jason Lewris, Co-Founder and Chief Data Officer for Parcl, says:
“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”
Do not let fear and uncertainty change your plan. If you’re unsure of where prices are heading or how to make sense of what’s going on in today’s housing market, reach out to a local real estate professional for the guidance you need each step of the way.
Final Thoughts
The housing market has changed and is currently a confusing place. To ensure you have a trusted real estate professional who can help you make informed and safe decisions about what’s happening in our market.
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, Baldwin, East Rockaway, Woodmere, Cedarhurst, Hewlett Harbor, and Freeport area.
Thu, 27 Oct 2022 01:43:41 +0000
by Mottek Group