Friday, September 16, 2022 / by Laura Larson
There are two things we need to comprehend in order to respond to this question. The first is the fact that the housing market has actually changed. The second is what industry experts predict will happen to home prices in the next year.
The Truth About the Housing Market's Shift
In actuality, the supply and demand for housing are at a turning point. While showings from the most recent ShowingTime Showing Index have declined about 17% from last year, active listings have climbed more than 26% over the previous year. This is a potential turning moment in the housing market because, during the past two years, there has been a tremendous amount of demand (showings) and a shortage of homes for sale relative to the number of buyers. The result was a market frenzy.
Supply and demand are different today, and the market is moving at a slower pace than before. Hence, the abrupt slowdown that so many individuals are experiencing.
What Analysts Say Will Happen to Home Prices in the Next Year
The majority of experts currently predict that home prices will increase in 2023, albeit at a much slower rate than they did in the previous two years. According to several forecasters, the average national home price increase will be 2.5% in the upcoming year.
The national real estate market is slowing down but is not a bubble that is about to burst when we consider the shift in the market as well as what experts are saying. This is not to imply that some hot markets won't see a decline in home prices, but there is no evidence to support the existence of a national housing bubble.
Many people worry that we are in a housing bubble as the real estate market is slowing down. The housing market has seen historically high levels of demand and limited supply over the last two years. Home values increased at a historic rate as a result of this. Experts predict that the national real estate market will increase in value in the upcoming year, despite the possibility of price declines in some overheated sectors in the short term. If you want to know more about the home market in this area, contact Laura Larson to receive expert advice.