What’s Ahead for Home Prices in 2023
Over the past year, home prices have been a significant source of speculation. Some experts predicted we’ll see a massive drop in prices and that this could be a repeat of 2008, which hasn’t happened. Others have forecasted a real estate market that could see a small amount of price appreciation or depreciation depending on the area of the country. And as we get closer to the spring real estate market, experts are continuing to forecast what’s ahead for home prices in 2023 and beyond.
Selma Hepp, Chief Economist at CoreLogic, says:
Verify your mortgage eligibility (Nov 23rd, 2024)“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.”
Moreover, every quarter, Pulsenomics surveys a panel of over 100 economists, investment strategists, and housing market analysts regarding their five-year expectations for future home prices in the United States. The graph below represents the consensus of what they most recently said.
So, given this information and what experts are saying about home prices, the question you might be asking is: should I buy a home this spring? Here are three reasons you should consider making a move:
- Buying a home helps you escape the cycle of rising rents. Over the past several decades, the median price of rent has risen consistently. This trend accelerated during the pandemic and shows no sign of abating.
- Homeownership is a hedge against inflation. A key advantage of homeownership is that it’s one of the best hedges against inflation. When you buy a home with a fixed-rate mortgage, you secure your housing payment, so it won’t go up like it would if you continue renting. This also brings a measure of predictability and stability to your family budget.
- Homeownership is a powerful wealth-building tool. The average net worth of a homeowner is $255,000 compared to $6,300 for a renter.
Experts are projecting slight price depreciation in the housing market this year, followed by steady appreciation in subsequent years. Given that, you may be wondering if you should move ahead with buying a home this spring. The decision to purchase a home is best made when you do it knowing all the facts and have experts like a respected mortgage broker and real estate agent on your side.
In Conclusion
If you are thinking of buying a home this spring a crucial first step should be to get pre-approved for a mortgage. This allows you to make offers that sellers will take seriously and know how much house you can afford. Let’s connect so we can get you pre-approved and provide you with the knowledge you need to make the most informed decision about your next move.
