starting to make their 2023 home price forecasts. As they do, most agree homes
will continue to gain value, just at a slower pace. Over the past couple of
years, home prices have risen at an unsustainable rate, leaving many to wonder
how long it would last. If you’re asking yourself: what’s ahead for the price
of my home, know that experts are now answering this question, and its welcome
news for homeowners who may have been led by the media to believe their home
would lose value.
home prices have appreciated at a rate near 4%. For 2023, the average of six
major forecasters noted below is 2.5%. While one, Zelman & Associates, is
calling for depreciation, the other five are calling for appreciation. The
graph below outlines each expert forecast to show where they project home
prices are going in the coming year.
understand why experts are calling for appreciation next year, look to the
economics of supply and demand. Dave Ramsey, Financial Expert, says this:
issue of what drives house prices almost always is supply and demand . .
are driving home prices upward. First, the undersupply of homes on the market
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 them. To further
that point, we’re still in a sellers’ market nationally, and in that scenario,
home prices tend to appreciate.
millennials are moving through their peak homebuying years. Since they’re the
largest demographic behind the baby boomers, demand isn’t going away any time
calling for home prices to appreciate next year, although at a slower pace than
the previous three years. The reason for this is simple. The dynamics of supply
and demand are playing out in real estate and will continue for many years to