Are you contemplating a relocation? If you are, you might be feeling somewhat apprehensive due to the widespread speculation of a housing market crash this year. However, it’s essential to rely on data and expert insights for reassurance. The good news is that home prices are not on a downward trajectory and are poised to end the year on a positive note.
Despite hearing claims of potential price drops of 5%, 10%, or even 20% for this year, those scenarios haven’t materialized. The primary reason for this is the inadequate supply of homes available for sale. With more prospective buyers than available properties, prices have remained stable.
To substantiate that 2023 hasn’t been a disappointment for home prices, let’s examine the most recent forecasts from various experts.
Leading Experts Anticipate Positive Growth in Home Prices This Year:
The consensus among industry experts is that home price appreciation will indeed be positive for 2023. The chart below presents the year-end forecasts for 2023 from six different organizations:
If the single red bar, indicating a slight overall price decline for the year, still causes concern, consider this perspective. The National Association of Realtors (NAR) forecast suggests only a minor decrease rather than the significant crash anticipated by some headlines. Moreover, when you average all six forecasts together, the collective expectation is approximately 3.3% positive growth for the year.
If you remain skeptical about the stability of prices, here’s another compelling factor to ponder. One of the forecasts represented in the chart is the Home Price Expectation Survey (HPES) from Pulsenomics, which compiles survey responses from over 100 economists, investment strategists, and housing market analysts. HPES reveals that the average projection among all 100 experts is a 3.3% increase in prices for the year.
Reviewing the chart above, you’ll notice that the blue average of these forecasts is also 3.3%. While individual forecasts may vary, both the HPES survey and the average of these forecasts yield the same outcome. A 3.3% appreciation signifies a significantly different narrative than falling prices.
In Conclusion, if you’re concerned about the possibility of declining home prices in 2023, take comfort in the expert consensus. Based on the average of the latest forecasts, the housing market is poised for positive growth this year. If you have inquiries regarding local housing market conditions, please don’t hesitate to reach out to a Benson & Mangold Agent for further discussion.
