As the real estate market cools, you may be wondering what the current market is doing to home prices. If you are thinking of buying or selling a house this year, you may have less to worry about than you think. Experts don’t think prices will crash nationally. However, the degree of price moderation in each market will be affected by factors such as supply and demand.
This means that home price appreciation will continue to vary by location. However, more dramatic changes are likely to occur in areas with high temperatures. Here is a quick summary of the expert’s thoughts:
Danielle Hale, Chief Economist at realtor.com, says:
“The major question on the minds of homeowners and aspiring buyers alike is what will happen to home prices. . . Soaring prices were propelled by all-time low mortgage rates which are a thing of the past. As a result, home price growth is expected to continue slowing, dipping below its pre-pandemic average to 5.4% for 2023, as a whole.”
Mark Fleming, Chief Economist at First American, says:
“House price appreciation has slowed in all 50 markets we track, but the deceleration is generally more dramatic in areas that experienced the strongest peak appreciation rates.”
Taylor Marr, Deputy Chief Economist at Redfin, says:
“For those bearish folks eagerly awaiting the home price crash, you’ll have to keep waiting. As much as demand is pulling back supply is as well reducing downward pressure on prices in the short run.”
John Paulson, Founder of Paulson & Co., says:
“It’s true – housing may be a little frothy. So housing prices may come down or they may plateau . . .”
What does this mean to you?
A local real estate agent is the best way to get all the information you need. You can trust them to help you make an informed decision about the market trends that affect your area.
Bottom line
For information about your local market, contact a real estate professional if you have any questions.