What’s Ahead for Home Prices in 2023

When Is The Best Time To Sell a Home?

The topic of home prices has been widely debated over the past year. Some have said we’ll see a massive drop in prices and that this could be a repeat of 2008 – which hasn’t happened. Some have forecast a slight real estate market appreciation or depreciation depending on the region. In the run-up to the spring real estate market, experts continue to predict what will happen to home prices this year and beyond.

Selma Hepp, Chief Economist at CoreLogic, says:

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.”

Additionally, 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. Here’s what they said most recently:

Considering these data and what experts say about home prices, you may be wondering: should I buy a home in the spring? Consider these three reasons for making a move:

  1. Buying a home can help you escape the cycle of rising rents. There has been a consistent increase in the median price of rent over the past several decades (figure 2). Rents are going up, plain and simple.
  2. Homeownership is a hedge against inflation. One of the key benefits of homeownership is that it is one of the best hedges against inflation. Buying a home with a fixed-rate mortgage secures your housing payment, so it won't go up like if you were renting.
  3. Homeownership is a powerful wealth-building tool. For renters, the average net worth is $6,300, compared to $255,000 for homeowners.

Bottom line:

Experts are projecting a slight price depreciation in the housing market this year, followed by steady appreciation. If you are considering purchasing a home, talk to a realtor to get the facts and learn how the process works. There is no one-size-fits-all solution and, quite honestly, there are times when the best deal is no deal, but it is important to know the facts. Many buyers wait before speaking with a realtor, but it's better to have the conversation early and be prepared. As the saying goes, success is where preparation and opportunity meet.

Let's connect so we can prepare you to succeed in this market.

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