Thinking about buying a new home can be an incredibly exciting but nerve-wracking experience, especially with all the talk of a potential housing market crash. However, it is important to remember that speculation does not mean reality. When looking at actual data and expert opinions, it becomes evident that home prices are not in a downward spiral and, in fact, will likely finish the year strong. In this blog post, we will look at the reasons why home prices have not plummeted and what the experts are projecting for 2023.
One of the main reasons why home prices have not taken a significant dip this year is the current supply and demand in the market. There are more buyers looking to purchase homes than there are homes available, resulting in a lack of supply and driving up prices. This supply and demand issue is not only seen in the housing market but in other industries as well, such as the car industry. Simply put, if there are more buyers than there are goods, prices will naturally rise.
Many industry experts are projecting that home prices will continue to rise in 2023. The National Association of Realtors (NAR) predicts only a slight decline in home prices, which is not the catastrophic crash that some headlines have implied. Additionally, if you consider all six forecasts collectively, they show an average of about 3.3% positive growth for the year.
One of the forecasts that supports this positive projection is the Home Price Expectation Survey (HPES) from Pulsenomics. The HPES combines the opinions of over 100 economists, investment strategists, and housing market analysts. The results of the survey found that these experts, on average, forecasted 3.3% price growth this year. This is a promising outlook for those looking to buy a home in the near future.
Another factor that supports the positive outlook for home prices is the current state of the overall economy. Despite the pandemic and other challenges in recent years, the economy has been steadily recovering, with low unemployment rates and other positive indicators. A strong economy translates into a strong housing market and could help continue to drive home prices up.
It is important to remember that while there may be some speculation and uncertainty in the housing market, the actual data and expert opinions show that home prices will likely finish the year strong. Don’t let the headlines scare you away from taking the first steps towards finding your dream home. Take the time to research and speak with industry professionals to make an informed decision that is right for you.
Making the decision to buy a home can be a bit daunting, especially amidst all the talk of a potential housing market crash. However, remember that speculation and reality are not always the same thing. The supply and demand issue in the current market and the expert projections both show that home prices are not in a downward spiral and will likely finish the year strong. With a strong economy and promising outlook, there is no need to postpone your home-buying plans. Take the time to do your research, speak with industry professionals, and make the decision that is right for you.