According to Fannie Mae’s most recent findings, 23% of Americans believe home prices will decrease in twelve months. Why do approximately one in four individuals harbor such sentiments?
This sentiment is primarily attributed to the pervasive negative discourse surrounding home prices throughout the past year. Since late 2022, the media has propagated apprehensions about an impending price crash, and these concerns persist. Perhaps you’ve encountered people in your personal circles expressing anxiety about home prices, or you’ve encountered influencers on social media predicting a substantial decline.
If you find yourself among those anticipating a drop in prices, consider this: where is the more dependable source of information – sensationalistic headlines and social media or insights from reputable experts in the housing market?
The answer is clear. Trust the guidance of professionals specializing in residential real estate.
Here’s the latest data that merits your trust. Experts in the housing market acknowledge a slight national price dip late last year, but this was transitory. Current data demonstrates a rebound in prices this year following that brief decline in 2022 (refer to the graph below):
However, it’s not solely Fannie Mae conveying this resurgence. Various experts within the industry are corroborating this trend in their data. This widespread acknowledgment is a key reason why numerous forecasts anticipate a positive net growth in home prices for the year, as opposed to a negative trajectory. The graph provided below substantiates this perspective by illustrating the latest projections from each organization:
Notably, just a few weeks ago, Fannie Mae’s forecast indicated a 3.9% appreciation for 2023. However, the latest update has revised this projection to 6.7% for the year. This substantial increase underscores experts’ high confidence in a positive trajectory for home prices this year.
If you hold the belief that home prices are on a downward trend, it might be prudent to turn to expert opinions, which consistently assert that prices are, in fact, on the rise.
In conclusion, the past year has seen a proliferation of misleading information regarding home prices, which has influenced current perceptions of the housing market. Nevertheless, it is crucial not to accept everything you hear or read unquestioningly.
Are you interested in more information? Let’s chat!