The Truth About Home Prices

These days there has been a lot of talk and speculation about which direction the real estate market is headed as we approach the beginning of the new year. Specifically many are wondering what may happen with rates, but also with where home prices are headed. This has kept some buyers and sellers a bit unsure about what to do about their plans. Here is some more information about the subject. 

Per a recent data release from Fannie Mae, 23% of Americans still think that home prices will decline over the next year. But why would this group of people be thinking this will happen? Much of this has to do with all of the headlines that people have read as well as general media coverage fostering a fear that a crash could be impeding similar to what we saw back in 2008.

For anyone who lies within the camp of thinking prices will be falling, ask yourself which source you are going to follow. The general headlines or a trusted professional in the market? Here is some data that you can refer to. Experts in the industry will acknowledge that there was a decline in home prices last year during Q3 and Q4 of 2022 but that was only short lived. Housing prices reverted to increasing during Q1 through Q3 of this year. Also, it is not just Fannie Mae with these reports of data showing the strength of home prices. Zillow, NAR, AEI, HPES and MBA all forecast appreciation with an average of 3.9% for the year of positive gain. Fannie Mae originally forecast 3.9% for their thoughts but recently changed that with an increase to 6.7%. 

At the end of the day there has been a lot of misleading information or negative speculation for home prices over the past year. This lingering feeling is still having its impact on how buyers and sellers are making their purchase and selling plans. Consider this research as you discuss your plan with your local real estate professional for what is happening in your particular area. Contact me to further discuss your plans in this ever changing market.