What’s ahead for home prices in 2023?
Over the past year, home prices have been a widely debated topic. Some have said we’ll see a massive drop in prices and that this could be a repeat of 2008 – which hasn’t happened. Others have forecasted a real estate market that could see slight appreciation or depreciation depending on the area of the country. And as we get closer to the spring real estate market, experts are continuing to forecast what they believe will happen with home prices this year and beyond.
While 2023 kicked off on a more optimistic note for the U.S. housing market, recent mortgage rate volatility proves how much uncertainty remains. However, the continued shortage of inventory is likely to keep price declines modest, which are projected to top out at 3%.
The latest economic forecast is as follows:
2023 – down 1.91%
2024 – Up 3.6%
2025 – Up 4.25%
2026 – Up 4.44%
So, given this information and what experts are saying about home prices, the question you might be asking is: should I buy a home this spring? Here are three reasons you should consider making a move:
1. Buying a home helps you escape rising rents. Over the past several decades, the median price of rent has risen consistently. The bottom line is, rent is going up.
2. Homeownership is a hedge against inflation as I have stated before. A key advantage of homeownership is that it’s one of the best hedges against inflation. When you buy a home with a fixed-rate mortgage, you secure your housing payment, so it won’t go up like it would if you rent.
3. Homeownership is a powerful wealth-building tool. The average net worth of a homeowner is $255,000 compared to $6,300 for a renter.
Experts are projecting slight price depreciation in the housing market this year (as noted above), followed by steady appreciation. Given that, you may be wondering if you should move ahead with buying a home this spring. The decision to purchase a home is best made when you do it knowing all the facts and have an expert on your side. Reach out to Marzeottigroup.net or a local real estate professional to make the most informed decision about your next move.