What’s Ahead for Home Prices?
Laurie-Ann Webster October 20, 2022
Laurie-Ann Webster October 20, 2022
As the housing market cools in response to the dramatic rise in mortgage rates, home price appreciation is cooling as well. And if you’re following along with headlines in the media, you’re probably seeing a wide range of opinions calling for everything from falling home prices to ongoing appreciation. But what’s true? What’s most likely to happen moving forward?
The graph below shows the most up-to-date forecasts from five experts in the housing industry. These are the experts that have most recently updated their projections based on current market trends:
As the graph shows, the three blue bars represent experts calling for ongoing home price appreciation, just at a more moderate rate than recent years. The red bars on the graph are experts calling for home price depreciation.
Basically, experts are divided on what’s ahead for 2023. Home prices will likely depreciate slightly in some markets and will continue to gain ground in others. It all depends on the conditions in your local market, like how overheated that market was in recent years, current inventory levels, buyer demand, and more.
The good news is home prices are expected to return to more normal levels of appreciation rather quickly. The latest forecast from Wells Fargo shows that, while they feel prices will fall in 2023, they think prices will recover and net positive in 2024. That forecast calls for 3.1% appreciation in 2024, which is a number much more in line with the long-term average of 4% annual appreciation.
And the Home Price Expectation Survey (HPES) from Pulsenomics, a poll of over one hundred industry experts, also calls for ongoing appreciation of roughly 2.6 to 4% from 2024-2026. This goes to show, even if prices decline slightly next year, it’s not expected to be a lasting trend.
As 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.”
The housing market is shifting, and it’s a confusing place right now. Let’s connect so you have a trusted real estate professional to help you make confident and informed decisions about what’s happening in our market.
Experts are optimistic about what 2024 holds for the housing market.
You haven’t missed your chance to sell at a time when sellers are receiving multiple offers.
If you want to buy a home, you may not need as much for your down payment as you think.
There aren’t that many homes available for sale right now, your home’s asking price still matters.
Whether you're on the hunt for your next home or thinking of selling, now might be the perfect time.
Achieving the dream of having a home may be more within reach than you think.
Here’s one key data point that could help you feel more confident in making your decision.
Home prices are still rising, just at a slower pace – and that’s perfectly normal for this time of year.
It can be helpful to know what led other people to buy their first home to make that decision.
You will find Laurie Ann energetic, integrity driven, family oriented, and professional to work with. Laurie grew up on Cape Cod in Falmouth, MA and agrees that there is no place like Cape Cod!
