Don't believe everything you read

about the furture of home prices

According to the latest data from Fannie Mae, 23% of Americans still think home prices will go down over the next twelve months. But… why?

 

Since late 2022,  there has been a lot of negative talk about home prices all over the media which has created a lot of fear about a price crash. Those concerns are still lingering. 

 

If you’re someone who still thinks prices are going to fall, ask yourself this: Which is a more reliable place to get your information – clickbait headlines and social media or a trusted expert on the housing market?

 

The answer is simple. Listen to the professionals who specialize in residential real estate, and look at the data.

 

Here’s the latest data you can actually trust. Housing market experts acknowledge that nationally, prices did dip down slightly late last year, but that was short-lived. Data shows prices have already rebounded this year after that slight decline in 2022 (see graph below):

Percent Change in Home Prices

But it’s not just Fannie Mae that’s reporting this bounce back. Experts from across the industry are showing it in their data too. And that’s why so many forecasts now project home prices will net positive this year – not negative. 

 

The graph below helps prove this point with the latest forecasts from each organization:

2023 Year-End Home Price Forecasts

What’s worth noting is that, just a few short weeks ago, the Fannie Mae forecast was for 3.9% appreciation in 2023. In the forecast that just came out, that projection was updated from 3.9% to 6.7% for the year. This increase goes to show just how confident experts are that home prices will net positive this year.

 

So, if you believe home prices are falling, it may be time to get your insights from the experts instead – and they’re saying prices aren’t falling, they’re climbing.

 

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Marvelous in Houston @ Douglas Elliman