Key Takeaways:
- According to expert forecasts, there’s positive news ahead.
- Home prices are expected to return to normal levels of appreciation quicker than you may think.
- Linda Craft Team Realtors are your most trustworthy agents in the Triangle for expert market advice!
The housing market is beginning to cool in response to the significant rise in mortgage rates, and home price appreciation may be cooling as well. If you’re keeping track of the media, you’re probably seeing a wide array of opinions in areas such as falling home prices and ongoing appreciation. But you’re probably wondering what’s true and what will happen moving forward?
While opinions differ, it’s likely that we’ll reside somewhere in the middle of mild appreciation and depreciation. Let’s take a look at the latest insider projections that you can trust.
What the Experts Are Saying About Home Prices Next Year
The graph below shows the most recent and accurate forecasts from five reputable experts in the housing industry, as well as updated market projections:
As the graph displays, the blue bars represent forecasts of ongoing home price appreciation, showing a more steady rate than recent years. The red bars represent experts calling for home price depreciation.
While there may not be a clear consensus, if you look at the average, displayed in green, of all five forecasts, the most likely outcome is that home price appreciation will be relatively flat next year.
What Does This Mean?
In simple terms, experts are divided on what’s to come ahead. Home prices may depreciate in a mild form in some markets and will continue to gain ground in others. Home prices are also dependent on the conditions in your local market, current inventory levels, what the market looked like in recent years, buyer demand, and more.
The positive news is that home prices are expected to return to normal levels of appreciation quicker than you may think. The latest forecast from Wells Fargo tells us that while they believe prices will fall in 2023, they think they’ll end up recovering and be net positive in 2024. The Wells Fargo forecast referenced calls for 3.1% appreciation in 2024, which aligns much more with the long-term average of 4% annual appreciation.
The good news doesn’t stop there – a poll of over one hundred industry experts, known as the Home Price Expectation Survey (HPES) from Pulsenomics, calls for ongoing appreciation of about 2.6 to 4% from 2024-2026. This gives us hope that 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.”
Focus on the positive news and expert forecasts instead of letting fear or uncertainty change your plans. If you’re not sure about where prices are headed or how to take action in today’s housing market, reach out to Linda Craft Team Realtors for guidance and expertise!
Bottom Line
With current shifts and changes, the market can be confusing. However, no one stays ahead of the market better than Linda Craft Team Realtors. Let’s connect today and achieve your real estate goals.