What Will Happen to Home Prices in 2023?
Home prices have been a hot button issue over the last 12 months, with some predicting an imminent crash similar to what occurred in 2008 – thankfully that hasn’t come to pass. Others contend we will see slight appreciation or depreciation depending on location in America. As spring approaches and real estate markets open up again, experts are continuing their debate about the future of home prices this year and beyond.Selma Hepp, Chief Economist at CoreLogic, says:
“While 2023 kicked off on a more optimistic note for the U.S. housing market, recent mortgage rate volatility highlights how much uncertainty remains. Nevertheless, the continued shortage of for-sale homes is likely to keep price declines modest, which are projected to top out at 3% peak to trough.”
Every three months, Pulsenomics inquires over 100 economists, investment strategists and housing market analysts for their opinion on the next five-year outlook of US home prices. Here’s what they recently reported:
With the current trends in real estate, a valid query may be: should I buy a house this spring? Now more than ever, there are three compelling reasons to pursue purchasing now:
- Purchasing a home is the perfect way to break away from the continuous cycle of climbing rent costs. The median price for renting has skyrocketed over multiple decades, leaving you with no other option than to accept that rents will only continue going up and up.
- Homeownership is a form of insurance against rising prices. If you obtain a mortgage with fixed payments, then your housing costs will stay the same – unlike when renting where they may increase over time due to inflation. This alone makes homeownership one of the most valuable investments for those looking to safeguard their finances in an ever-changing economy.
- Becoming a homeowner is an incredibly effective method of accumulating wealth. In fact, the typical net worth for homeowners is nearly 40 times more than those who rent, at $255,000 compared to renters’ average of just $6,300.
For many potential homebuyers, the thought of fluctuations in the housing market can be daunting. However, experts predict that after a slight price depreciation this year, steady appreciation will take place over time. If you’re considering buying a house this spring, it’s important to keep informed about all relevant factors and enlist an expert who can guide you through the process. With all these facts on your side and someone to provide advice every step of the way, making an educated decision becomes much easier!
Bottom Line
Make the most educated decision possible about your next move by contacting a local real estate specialist, let’s connect today.
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