Updated 2023 Market Forecast
/Today Carter Campbell with Houzd Mortgage will discuss the current real estate market and the forecast for the rest of the year. I’ll link to the info he references below.
Towards the end of last year, many news reports made a big deal about how home prices were supposed to go down a lot in 2023. This got a lot of people worried, thinking about the big housing crash we saw back in 2008. But it turns out, those predictions were way off the mark.
Yes, there was a bit of a hiccup in home prices after they had been going up like crazy in recent years. But when we look at the big picture, home prices all across the country didn't really crash. In fact, they held up better than most folks thought they would.
Here's what's interesting: The experts who make these predictions initially said home prices would drop in 2023. But now, they've changed their tune. They've updated their forecasts to say that by the end of this year, home prices will either stay the same or even go up a bit. That's a pretty big shift from their earlier predictions of doom and gloom.
So, why didn't home prices tumble like some folks thought? Well, one of the reasons is the kind of mortgages most people have in the U.S. These mortgages keep your monthly payments steady, even if home prices go up. This helps protect homeowners from getting squeezed when prices rise, which, in turn, helps keep home values relatively stable.
Now, let's look ahead a bit. You might still see confusing news about home prices in the coming months. That's because, just like the weather, there's a season for everything in the housing market. Towards the end of the year, things tend to slow down a bit, including how much home prices are going up. But don't get the wrong idea; this slowdown doesn't mean prices are dropping. It just means they're not rising as fast as they were during the busy home-buying season.
In summary, even though the news made a big fuss about home prices falling last year, that didn't really happen. If you want to stay on top of what's going on in the housing market, it's a good idea to chat with a real estate agent. They can give you the real scoop and help you understand what's really happening with home prices.