Friday, September 23, 2022 / by Laura Larson
Home price projections for 2023 are currently being calculated by real estate experts. Most analysts concur that properties will still increase in value, albeit at a slower pace than in recent years. There has been a lot of speculation about how long the recent unsustainable spike in property prices will last. If you're wondering what the price of your property will be in the future, be aware that specialists are now providing answers. This is good news for homeowners who might have been misled by the media into thinking their homes will depreciate in value.
Historically, home prices have appreciated at a rate near 4% annually. For 2023, the average of six major forecasters noted below is 2.5%. While one, Zelman & Associates, is calling for depreciation, the other five are calling for appreciation.
Look to supply and demand economics to comprehend why specialists are urging for appreciation in the upcoming year. As a financial specialist asserts: "The fundamental factor that determines how much houses cost almost always is supply and demand...”
Home prices are rising as a result of two factors. First, we still have a problem in this country with the lack of available housing. There are still not enough houses available for sale to accommodate the demand. To support that claim even further, the national real estate market is still one in which homes tend to rise in value.
Second, the prime home-buying years for millennials are currently underway. They make up the second-largest demographic after baby boomers, so demand won't diminish anytime soon.