The real estate housing market continues to change this year leaving many to wonder where it will go from here. Gone are the days of historically low mortgage rates which only fueled the bidding wars that were occurring on almost any property for sale. Nowadays 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. The big question many are wondering now is what should we expect in the way of trends for home prices?
There has been a lot of chatter about a potential dip in prices since home prices peaked last year in June. Many have been wondering 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 waiting 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 shows home price trends in November of 2022 compared to February of 2023. The study shows that 96% of home prices had declined during the month of November whereas 78% of home prices increased in February of 2023.
This report will make you think hard about waiting as signs are showing that prices are now increasing as opposed to decreasing. Other experts and studies including the Home Price Expectation Survey project that prices will increase steadily and land return back to more of a normal pace of appreciation after 2023.
Each market behaves differently and there will be subtle nuances within every area. The best way to help you understand 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.