Housing Price Increases
Do home prices only go up? That is what it might seem like for a motivated buyer in today’s housing market. But, will prices really continue to increase at historical rates, or will we see some more normalcy in the market come 2023? Well, as it is right now, there is little signs of relief for home price increases. More housing price increases have forced the hands of economists to once again increase their price projections for homes in 2022. Even with a potential recession coming in the following months or years, housing prices are still forecast to increase.
Housing price increases are nothing new in this market. We have seen a historical increase in equity and home prices throughout the pandemic market. While some normalization is likely coming in the following months, we are still looking at a record increase. Many experts were forced to increase their housing price increases for the remainder of the year. As more sources come out and revise their 2022 price increases, we are likely to see which direction the market will lead to.
Experts On About Housing Price Increases
According to the chart provided by Keeping Current Matters, we can see just how much these experts were off to start the year. The latest forecasts are over 100% higher for most economists, besides MBA. Most of these sources revised their numbers higher as demand stayed elevated even at higher rates. In January, there was some uncertainty over the real estate market, and some optimism for buyers. That was quickly changed, and revised higher. There is still one glaring issue in housing: supply and demand.
Straight from Bankrate:
“After all, supplies of homes for sale remain near record lows. And while a jump in mortgage rates has dampened demand somewhat, demand still outpaces supply, thanks to a combination of little new construction and strong household formation by large numbers of millennials.”
Future For Buyers
Knowing that even experts were having a hard time predicting the market should spell signs of relief and concern for buyers. It could be some relief as economists will likely overshoot home price increases for next year. If they overshoot the increases for next year, buyers could get a ‘steal’ (I say loosely based on multi-year trends) based on expert predictions. It could be concerning for buyers, however, if experts continue to undershoot their housing price increases. All in all, we and many economists are in the same boat. There is no signs of a housing market crash in 2023, as inventory will continue to remain low and mortgage rates might have topped out.