Weekly real estate market update 3/24/23 – what’s ahead for home prices?

Coming soon listings are increasing, which will help feed future new listings and pending sales which are in lock step. I was surprised to see multiple offers drop a bit… I had a buyer compete on a house with 16 offers last weekend! Of course location and price will always be an important factor in driving the competition.

Showings are following the trend of the last two years… but lower.

Of course it makes sense showings would be lower than the past two years because new, pending, and coming soon listings are also lower.

With so much volatility in the financial markets, does it make sense to buy right now? Rents are going up, what is happening with home prices? Read about what’s ahead for home prices in the article below from our blog at Keeping Current Matters. Of course, don’t forget these are national averages… we are more insulated in the middle of the country from the wild fluctuations on the coasts.

Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com

What’s Ahead for Home Prices in 2023

For Buyers, First Time Home Buyers, Move-Up Buyers, Housing Market Updates, Rent vs. Buy

Over the past year, home prices have been a widely debated topic. Some have said we’ll see a massive drop in prices and that this could be a repeat of 2008 – which hasn’t happened. Others have forecasted a real estate market that could see slight appreciation or depreciation depending on the area of the country. And as we get closer to the spring real estate market, experts are continuing to forecast what they believe will happen with home prices this year and beyond.

Selma Hepp, Chief Economist at CoreLogicsays:

While 2023 kicked off on a more optimistic note for the U.S. housing market, recent mortgage rate volatility highlights how much uncertainty remains. Nevertheless, the continued shortage of for-sale homes is likely to keep price declines modest, which are projected to top out at 3% peak to trough.”

Additionally, every quarter, Pulsenomics surveys a panel of over 100 economists, investment strategists, and housing market analysts regarding their five-year expectations for future home prices in the United States. Here’s what they said most recently:

So, given this information and what experts are saying about home prices, the question you might be asking is: should I buy a home this spring? Here are three reasons you should consider making a move:

  1. Buying a home helps you escape the cycle of rising rents. Over the past several decades, the median price of rent has risen consistently. The bottom line is, rent is going up.
  2. Homeownership is a hedge against inflation. A key advantage of homeownership is that it’s one of the best hedges against inflation. When you buy a home with a fixed-rate mortgage, you secure your housing payment, so it won’t go up like it would if you rent.
  3. Homeownership is a powerful wealth-building tool. The average net worth of a homeowner is $255,000 compared to $6,300 for a renter.

Experts are projecting slight price depreciation in the housing market this year, followed by steady appreciation. Given that, you may be wondering if you should move ahead with buying a home this spring. The decision to purchase a home is best made when you do it knowing all the facts and have an expert on your side.

Bottom Line

Let’s connect so you can make the most informed decision about your next move.

Written By

I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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