The Latest Expert Forecasts for Home Prices in 2023

Are you contemplating a move? If you are, the prevailing speculation of a potential crash in home prices this year might be causing some apprehension about your decision. It's important to find reassurance in the data and insights provided by experts. Contrary to the anticipated decline of 5%, 10%, or even 20% in prices, this hasn't materialized. The primary factor behind this is the insufficient supply of homes for sale. With more buyers in the market than available homes, prices have remained stable.

To dispel any concerns about this year being a disappointment for home prices, let's examine the latest 2023 forecasts from various experts.

The consensus among industry experts is optimistic, projecting a positive appreciation in home prices for 2023. The graph below illustrates the year-end forecasts for 2023 from six different reputable organizations:

As evident from the graph, with the exception of one, all national projections anticipate positive growth in home prices this year. This collective optimism among the majority is noteworthy.

For those concerned about the single red bar indicating an overall price decrease, it's crucial to consider the context. The National Association of Realtors (NAR) foresees only a marginal decline, far from the substantial crash predicted by sensational headlines. Furthermore, when you average the forecasts from all six organizations, the consensus points toward a net positive growth of approximately 3.3% for the year.

In case the endorsement of these six entities isn't sufficient, here's another perspective to ponder. The Home Price Expectation Survey (HPES) from Pulsenomics, representing one of the forecasts in the graph, amalgamates insights from over 100 economists, investment strategists, and housing market analysts. The HPES reveals an average of 3.3% price growth, aligning with the combined forecast from the graph.

Observing the graph again, you'll note that the blue average for the forecasts also stands at 3.3%. While individual projections may differ, both the HPES survey and the averaged forecasts convey the same message. A 3.3% appreciation paints a vastly different picture than a scenario where prices are on the decline.

In summary, if concerns about a decline in home prices persist, let the reassurance of experts prevail. According to the collective wisdom of the latest forecasts, home prices are poised for positive growth this year. For specific insights into the dynamics of home prices in your area, consider consulting with a real estate agent.