Home Price Crash Coming- True or False?

According to Fannie Mae, 23% of Americans still think home prices will go drop low over the next year. But why do roughly 1 in 4 people feel that way?

It has a lot to do with all the negative talk about home prices over the past year. Since late 2022, the media has created a lot of fear about a price crash and those concerns are still lingering. You might be hearing people in your own life say they’re worried about low home prices or see on social media that some influencers are saying prices are going to come tumbling down.

If you’re wondering what to think, ask yourself this: Which is a more reliable place to get your information – clickbait headlines and social media or a trusted expert on the housing market?

The answer is simple. Listen to the professionals who specialize in residential real estate.

Here’s the latest data you can truly trust: housing market experts acknowledge that nationally, prices did dip down slightly late last year, but that was short-lived. Data shows prices have already rebounded this year after that slight decline in 2022 (see graph below):

But it’s not just Fannie Mae that’s reporting this bounce back. Experts from across the industry are showing this in their data too and that’s why so many forecasts now project home prices will net positive this year – not negative. The graph below helps prove this point with the latest forecasts from each organization:

What’s worth noting is that, just a few short weeks ago, the Fannie Mae forecast was for 3.9% appreciation in 2023. In the forecast that just came out, that projection was updated from 3.9% to 6.7% for the year. This increase goes to show just how confident experts are that home prices will net positive this year.

So if you believe home prices are falling, it may be time to get your insights from the experts instead – and they’re saying prices aren’t falling, they’re climbing!

If you have any questions, please call us today we are here and happy to help you with any of your home buying, selling or refinancing needs! 206-590-2414