What The Experts are Saying about 2023
Experts are now starting to make home price forecasts for 2023. Here’s what they’re saying:
Most experts agree homes will continue to gain value, just at a slower pace. Over the past few years, home prices have risen at an unsustainable rate–leaving many to wonder how long it could last. If you’ve been wondering what might happen with the price of your home, know that experts are answering this question and it’s good news for homeowners who may have thought their home would lose value.
Historically, home prices have appreciated at a rate near 4%. For 2023, the average of six major forecasters noted below is 2.5%. While Zelman & Associates is calling for depreciation, the other five are calling for appreciation. The graph below outlines each expert’s forecast to show where they project home prices to be in the coming year:
To understand why experts are calling for appreciation next year, you have to understand the economics of supply and demand. Dave Ramsey, a Financial Expert, says:
“The root issue of what drives house prices almost always is supply and demand…”
Two things are driving home prices up–first, the undersupply of homes on the market. This is an issue we continue to face in this country, we still don’t have enough homes on the market for the number of people that want to buy. To further that point, we’re still in a seller’s market nationally, and in that scenario, home prices tend to appreciate.
Secondly, millennials are moving through their peak homebuying years. Since this is the largest demographic behind the baby boomers, demand won’t be going away any time soon.
If you’d like to talk about your future and how to make your home dreams become a reality, we would love to help you! Call us today!
The Dorman Team – 206-590-2414