According to the latest data from Fannie Mae, 23% of Americans still believe home prices will fall in the next 12 months. But why does one in four people think this way?
This has a lot to do with the negative home price story over the past year. Since late 2022, there has been great concern in the media about price collapse, and those concerns remain. Maybe you’ve heard people around you say they’re worried about home prices, or you’ve seen social media influencers say home prices are falling.
If you are one of those people who still believe that prices will go down, ask yourself: Is there a more reliable place to get information about headlines and social media for clicks or reliable real estate experts?
The answer is simple. Hear from a residential real estate expert.
Here’s the most up-to-date data you can trust: Real estate experts admit that national prices dipped slightly at the end of last year, but that it was short-lived. The data shows that prices have recovered this year after falling slightly in 2022 (see chart below).
But Fannie Mae isn’t the only one talking about this recovery. Experts in each field reveal this through their own data as well. That’s why most forecasts suggest that house prices will be positive this year, not negative. The chart below helps illustrate this point with the latest forecasts for each organization.
It’s worth noting that Fannie Mae‘s forecast a few weeks ago was for 2023 growth of 3.9%. The recently published forecast revised the outlook for this year from 3.9% to 6.7%. This increase shows how confident analysts are that house prices will be positive this year.
So if you think home prices are on the decline, it’s time to ask an expert for advice. Experts say prices are going up, not down.
In conclusion, while there has been much negativity surrounding the housing market lately, the latest data these concerns are mostly unfounded. The rise in home prices is expected to continue, causing demand to increase as well. So, the next time you hear someone saying that home prices are going to tank, you can safely ignore them. Listen to the experts and make your next real estate move today!
