As 2022 drew to a close and was about to end its chapter, there were a lot of rumors buzzing around with a lot of predictions that the housing market would tank in the year 2023. The majority of the masses started to get anxious, whether it was first-time home sellers or tenured home investors; They were all asking the same question if we were heading towards another disastrous crash like the one that we had experienced in the year 2008. Surprise though, as it turns out those gloomy headlines missed the mark on their home price forecast predictions.
Instead of plummeting and the crashing downfall most experts were expecting this year, home prices showed surprising resilience amidst all of those rumors going around. After the home pricing rise during what some call the ‘unicorn years,’ or what most people refer to as unsustainable record highs, we did see a minor price adjustment compared to that data. But guess what? It was far from a market collapse.
Now, let’s do a quick reality check by comparing the doom-and-gloom predictions from last year with the latest projections. Even the experts are admitting they were a bit too negative with their home price forecast last year as well.
From Past to Present: How Expert Home Price Predictions Have Evolved
The chart below presents 2023 home price prediction data from seven different organizations. It shows you a side-by-side comparison of their initial projections made in late 2022 highlighted in red, with their most recent updates for where they expect prices to land by year’s end.
As you can see by the glaring scarlet red in the center column, the initial forecasts had predicted a sharp decline in home prices across the board.
However, fast-forward to the rightmost column, and you’ll see a different light in the story. Every expert has since revised their year-end predictions, now expecting home prices to either hold their ground steady or even have a bump or increase. That’s a major turning point from the doom-and-gloom they were all projecting just a year ago.
Stay Ahead of the Curve with Our Cutting-Edge Predictions
You can definitely expect some head-scratching media stories about home prices forecast in the coming months. Why? They often get thrown off by the usual fluctuating ups and downs that come with different seasons. Here’s your sign and turning point to stay one step ahead of the game of any doom-and-gloom headlines.
As the year winds down and the season changes, which is completely normal in any kind of market, you can definitely expect the pace of home price growth will slow down a tad bit. But don’t mistake this for plummeting prices or a downward spiral—it’s more like gradually tapping the brakes, not slamming them.
In simpler terms or just in summary, a slower increase in home prices doesn’t mean they’re actually falling as you can base it on past predictions.
The headlines from a lot of articles and news stories can really shape how most people think, even when they’re off the mark increasing your anxiety in buying or selling a home. Despite last year’s media buzz claiming home prices would plummet and all the home price forecasts, the reality has been quite different, as you might have understood and learned from this article.
Feel free to reach out to the McT Real Estate Group; we’re your go-to source for cutting through the noise with trustworthy info.