There has been a lot of talk about a housing bubble in the coming year. This is because mortgage rates have been going up, and it has caused the real estate market to slow down. In the past two years, home prices have gone up too quickly, and some people are asking if there will be a crash.
There are two things we need to understand to answer this question. The first is how the housing market has changed recently. And the second is what experts say about home prices in the coming year.
The Reality of the Shift in Today’s Housing Market
The reality is that we see a change in housing supply and demand. According to realtor.com, there are more homes for sale now than there were last year (26% more, to be exact), while the number of showings has decreased by almost 17%.
This change means that the market is slowing down from the pace we’ve seen in recent years. This offers proof that many people have been feeling a slowdown in the market lately.
What Experts Are Saying About Home Prices in the Coming Year
Most experts predict that home prices will go up in 2023, but not as much as in the last two years. The average of the six experts is that home prices will increase by 2.5% in the next year. Only one expert predicts that home prices will decrease.
See below.
The national real estate market is slowing down, but it is not a bubble that will burst. This doesn’t mean that some markets where prices have gone up too high won’t see a decrease in home prices, but there is no reason to think that there is a national housing bubble.
Sandi & Debbie say…
The real estate market is slowing down, and that’s causing some people to be scared. This is because we have experienced high demand and a lack of housing supply in the past two years. This led to homes going up in value at a record pace.
While some overheated markets may experience price depreciation in the short term, according to experts, the national real estate market will appreciate in the coming year.
*Info & data taken from Keeping Current Matters, ©2022.
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