The Truth About Home Prices

November 29, 2023
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These days there is often a lot of discussion and speculation about which direction the real estate market is headed as we approach the beginning of the new year. Specifically many are guessing at what may happen with home loan rates, but also with where home prices are headed. This has made some buyers and sellers a bit unsure about what to do about their plans. Here is some more information about the subject. 
According to a recent data release from Fannie Mae, 23% of Americans still feel that home prices will dip over the next year. But why would this group of people be thinking this will happen? A lot of this has to do with all of the headlines that people have read as well as general media coverage creating fear that a crash could be impeding similar to what we saw back in 2008.
For anyone who falls within the group of thinking prices will be falling, ask yourself which source you are going to follow. The general headlines or a trusted expert in the market? Here is some data that you can refer to. Experts in the industry will acknowledge that there was a dip in prices last year during Q3 and Q4 of 2022 but that was only very brief. Housing prices reverted to increasing during Q1 through Q3 of this year. Furthermore, it is not just Fannie Mae with these reports of data showing the strength of home prices. Zillow, NAR, AEI, HPES and MBA all predict appreciation with an average of 3.9% for the year of positive gain. Fannie Mae originally forecast 3.9% for their projected data but recently increased that to 6.7%. 
Ultimately there has been a lot of misleading information or negative speculation for home prices over the past year. This lingering feeling is still having its impact on how buyers and sellers are making their purchase and selling plans. Consider this information as you discuss your plan with your local real estate professional for what is happening in your particular area.