The most recent data from Fannie Mae reveals that 23% of Americans remain convinced that home prices will decrease within the next twelve months. However, what is causing nearly a quarter of the population to hold this belief? This sentiment can be largely attributed to the negative discourse surrounding home prices in the past year. Since late 2022, the media has fueled concerns of a potential price crash, and these apprehensions persist. You may have encountered people in your circle expressing worry about home prices, or you may have come across influencers on social media predicting a decline.
If you are among those who still anticipate a price drop, consider this: Which source of information is more dependable – sensational clickbait headlines and social media, or the insights of trusted housing market experts? The answer is straightforward: Place your trust in professionals who specialize in residential real estate.
Here's the most recent data that you can rely on: Experts in the housing market acknowledge that there was a minor dip in prices at the national level late last year, but this decline was short-lived. Data indicates that prices have already rebounded this year following that slight decrease in 2022 (refer to the graph below):
Nonetheless, it's not just Fannie Mae that confirms this rebound. Professionals from various sectors within the industry are also reflecting this in their data. This is why many forecasts are now projecting positive home price trends for the year, rather than negative ones. The graph below provides further evidence of this, featuring the latest forecasts from each organization:
What's noteworthy is that only a few weeks ago, Fannie Mae's projection was for a 3.9% increase in home prices for 2023. In the most recent forecast, this estimate has been revised from 3.9% to 6.7% for the year. This adjustment demonstrates the high level of confidence that experts have in the positive trajectory of home prices this year.
So, if you believe that home prices are declining, it might be time to seek insights from the experts instead. They assert that prices are not decreasing but rather on the rise. In conclusion, there has been a significant amount of misleading information regarding home prices over the past year, and this continues to influence people's perceptions of the housing market today. However, it is advisable not to believe everything you come across.
If you have questions about the current situation in your local area, feel free to reach out and connect.
