The real estate market continues to evolve this year leaving many to wonder where it will go next. The days of historically low mortgage rates are gone which only fueled the bidding wars that were occurring on most any property for sale. These days the rates have climbed which has set a slower pace for home sales perhaps giving buyers a bit more time to negotiate the right deal with less competition. Now the big question many are wondering is what should we expect in the way of trends for home prices?
There has been a lot of press about a potential dip in home prices since they peaked last year in June. Many have been pondering if they should be holding off on a home purchase as a result. In fact, a recent survey from Zonda shows 53% of millennials are still renting right now because they’re holding off for home prices to come down. However, more recent data is suggesting that home prices have already bottomed out and are now on the rise again. Data from Black Knight indicates home price trends in November of 2022 compared to February of 2023. The report shows that 96% of home prices had declined during the month of November where 78% of home prices increased in February of 2023.
This report will make you think twice about waiting as signs are showing that prices are now increasing as opposed to decreasing. Other experts and industry studies including the Home Price Expectation Survey anticipate that prices will increase steadily and return back to more of a normal pace of appreciation after 2023.
Each market performs differently and there will be slight nuances within every area. The best way to help you stay on top of the trends in your market or area of interest is to rely on a professional real estate agent like myself to assist you with the best insight and guidance.