Home Price Forecasts 2023
Expert Home Price Forecasts Revised Up for 2023 Toward the end of last year, there were a number of headlines saying home prices were going to fall substantially in 2023. That led to a lot of fear and questions about whether there was going to be a repeat of the housing crash that happened back in 2008. But the headlines got it wrong. While there was a slight home price correction after the sky-high price appreciation during the ‘unicorn’ years, nationally, home prices didn’t come crashing down. If anything, priceswere a lot more resilient than many people expected. Let's take a look at some of the expert forecasts from late last year stacked against their most recent forecasts to show that even the experts recognize they were overly pessimistic. Expert Home Price Forecasts: Then and Now This visual shows the 2023 home price forecasts from seven organizations. It provides the original 2023 forecasts (released in late 2022) for what would happen to home prices by the end of this year and their most recently revised 2023 forecasts (see chart below): As the red in the middle column shows, in all instances, their original forecast called for home prices to fall. But, if you look at the right column, you’ll see all experts have updated their projections for the year-end to show they expect prices to either be flat or have positive growth. That’s a significant change from the original negative numbers. There are a number of reasons why home prices are so resilient to falling. As Odeta Kushi, Deputy Chief Economist at First American, says: “One thing is for sure, having long-term, fixed-rate debt in the U.S. protects homeowners from payment shock, acts as an inflation hedge - your primary household expense doesn't change when inflation rises - and is a reason why home prices in the U.S. are downside sticky.” A Look Forward To Get Ahead of the Next Headlines For home prices, you’re going to continue to see misleading media coverage in the months ahead. That’s because there’s seasonality to home price appreciation and they’re going to misunderstand that. Here’s what you need to know to get ahead of the next round of negative headlines. As activity in the housing market slows at the end of this year (as it typically does each year), home price growth will slow too. But, this doesn’t mean prices are falling – it’s just that they’re not increasing as quickly as they were when the market was in the peak homebuying season. Basically, deceleration of appreciation is not the same thing as home prices depreciating. Bottom Line The headlines have an impact, even if they’re not true. While the media said home prices would fall significantly in their coverage at the end of last year, that didn’t happen. Let’s connect so you have a trusted resource to help you separate fact from fiction with reliable data.
Don't Sell your Home in the Fall If....
Fall is the season for all things cozy, the changing of the colors, crisp air, pumpkins, and bonfires. Buyers are serious and ready to buy fast, get moved in before the holiday season, and enjoy fall while they can. But what about you? If you’re considering selling your home in the fall, don’t sell if… 1. You want your house to sit on the market You want your house to spend extra time on the market so you can specifically show off the new bathroom renovation you did last year. 2. You don’t want to close fast You want to take your time and you aren’t looking to pocket your cash fast. You have a bunch of stuff in your home and need extra time to pack it all up. 3. You want more competition for your home You don’t like being the center of attention and having all of the buyers looking at your home since there aren’t many other homes to view. 4. You prefer to move when it’s 90+ degrees outside Who needs constant air conditioning? Summer is your favorite month and you love the feeling of the constant blazing heat on your skin and sweating in places you never thought you could while hauling heavy boxes into a moving truck. 5. You don’t want potential buyers to steal your Pinterest-worthy fall decor ideas It took weeks of preparation scrolling through Pinterest and Instagram Reels and shopping through the aisles of Target and Hobby Lobby, gathering the best of the best fall decor. Then after a labor of love of putting it all together, you can’t bring yourself to invite guests over or host open houses because they might copy your ideas or take pictures of your living room and claim it as their own. If you DO want to sell your home quicker, get serious buyers, have less competition, move when it’s cooler weather outside, and show off your gorgeous fall décor, then you should definitely consider selling this fall. Give us a call :-)
How to Determine Your Home’s Value
Determining your home’s value can help give you a good idea of what your house could sell for in the current housing market. For some it can even help you get a rough number for how much you can charge tenants when renting out your property. You may have recently purchased your home or have lived in it for at least 5 years or more, either way you have likely added some upgrades or your property could have increased in value due to the housing market alone. Housing sites like Zillow, Redfin, and Realtor.com can give you a rough estimate based on comparable properties in the area, but they aren’t always accurate due to many factors and variables that give them the possible price that it could sell for. We plan to do a video explaining this in more detail so stay tuned! Everything considered, it’s best to contact a real estate professional to provide you with a few close comparables regarding square footage, number of bedrooms and bathrooms, location, and other features that can best prove your case to potential buyers on why you priced what you did. If you want to know what your home could sell for in today’s market, you can type in your address here as well as other details about your home that could help determine its listing price and we’ll send you a valuation within the next business day.
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