Are you considering a move? If so, you might be feeling uneasy about your decision due to speculation that home prices would decline this year. However, data and experts affirm that prices are not spiraling downward and will actually end the year on a strong note.

Despite rumors of a 5%, 10%, or even 20% drop in prices this year, that hasn't materialized. The main reason for this is the limited supply of homes for sale. There are more buyers than available homes, which has prevented prices from falling.

To demonstrate that this year has been successful for home prices, let's examine the latest 2023 forecasts from various experts.

Most experts project positive growth for home prices this year. The following graph presents the year-end forecasts for 2023 from six different organizations:

As you can see, all but one organization project prices will increase this year. This is significant because most experts are optimistic about home price growth.

If you're concerned about the one red bar that indicates an overall price decrease for the year, consider this: the National Association of Realtors (NAR) projection predicts only a slight decline. It's not the significant crash the headlines have warned about. Moreover, when you average all six forecasts, prices are expected to show approximately 3.3% positive growth for the year.

If these six organizations cannot convince you that prices won't plummet, here's something to consider. One of the forecasters represented in the graph is the Home Price Expectation Survey (HPES) from Pulsenomics. This survey consolidates input from over 100 economists, investment strategists, and housing market analysts. The HPES reveals an average growth projection of 3.3% from all 100 experts.

When you look at the graph, you'll notice that the forecast's blue average line aligns with 3.3%. While individual predictions may differ, the HPES survey and the average of these forecasts project the same outcome. A 3.3% appreciation indicates an entirely different scenario than declining prices.

The Bottom Line

To sum it up, if you're concerned about home prices dropping this year, allow the experts to reassure you. The latest forecasts indicate that home prices will experience positive growth. If you have any questions regarding local home prices, let's connect.