What’s Ahead for Home Prices?

As the [housing market](https://www.simplifyingthemarket.com/2022/10/11/what-are-experts-saying-about-the-fall-housing-market/?a=713258-9a8342bcf821027012880bf1d7cccbf7) cools in response to the dramatic rise in [mortgage rates](https://www.simplifyingthemarket.com/2022/10/04/the-cost-of-waiting-for-mortgage-rates-to-go-down/?a=713258-9a8342bcf821027012880bf1d7cccbf7), home price appreciation is cooling as well. And if you’re following along with headlines in the media, you’re probably seeing a wide range of opinions calling for everything from falling home prices to ongoing appreciation. _But what’s true? What’s most likely to happen moving forward?_ While opinions differ, the most likely outcome is we’ll fall somewhere in the middle of slight appreciation and slight depreciation. Here’s a look at the latest expert projections so you have the best information possible today. #### What the Experts Are Saying About Home Prices Next Year The graph below shows the most up-to-date forecasts from five experts in the housing industry. These are the experts that have most recently updated their projections based on current market trends: [](https://files.simplifyingthemarket.com/wp-content/uploads/2022/10/19093208/20221020-MEM-Eng-1-1.png?a=713258-9a8342bcf821027012880bf1d7cccbf7) As the graph shows, the three blue bars represent experts calling for ongoing home price appreciation, just at a more moderate rate than recent years. The red bars on the graph are experts calling for home price depreciation. While there isn’t a clear consensus, if you take the average _(shown in green)_ of all five of these forecasts, the most likely outcome is, nationally, home price appreciation will be fairly flat next year. #### What Does This Mean? Basically, experts are divided on what’s ahead for 2023. Home prices will likely depreciate slightly in some markets and will continue to gain ground in others. It all depends on the conditions in your local market, like how overheated that market was in recent years, current inventory levels, buyer demand, and more. The good news is home prices are expected to return to more normal levels of appreciation rather quickly. The latest [forecast](https://wellsfargo.bluematrix.com/links2/html/429eb828-b17e-4e47-8856-4ff59f9d3d1a) from _Wells Fargo_ shows that, while they feel prices will fall in 2023, they think prices will recover and net positive in 2024. That forecast calls for 3.1% appreciation in 2024, which is a number much more in line with the long-term average of [4%](https://www.forbes.com/sites/qai/2022/08/30/housing-prices-are-dropping---yes-a-house-is-still-a-good-investment/?sh=54fdefd17372) annual appreciation. And the [_Home Price Expectation Survey_](https://pulsenomics.com/surveys/#home-price-expectations) (HPES) from _Pulsenomics_, a poll of over one hundred industry experts, also calls for ongoing appreciation of roughly 2.6 to 4% from 2024-2026. This goes to show, even if prices decline slightly next year, it’s not expected to be a lasting trend. As Jason Lewris, Co-Founder and Chief Data Officer for _Parcl,_ [says](https://www.parcllabs.com/articles/q3-real-estate): > ###### _“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”_ Don’t let fear or uncertainty change your plans. If you’re unsure about where prices are headed or how to make sense of what’s going on in today’s housing market, reach out to a local real estate professional for the guidance you need each step of the way. ### Bottom Line The housing market is shifting, and it’s a confusing place right now. Let’s connect so you have a trusted real estate professional to help you make confident and informed decisions about what’s happening in our market. Posted by [Ryan Drowne](https://www.thedavidgreengroup.com/blog/author/ryandrowne/) on October 20th, 2022 Enjoy this blog post? Click here to subscribe for updates [Facebook Share this post on Facebook](https://www.thedavidgreengroup.com/blog/httpswwwsimplifyingthemarketcomen20221020whats-ahead-for-home-pricesa713258-9a8342bcf821027012880bf1.html# "Share this post on Facebook") Twitter Tweet this post on Twitter [Email Send a link to post via Email](mailto:?subject=What%E2%80%99s%20Ahead%20for%20Home%20Prices%3F&body=I%20was%20looking%20at%20https%3A%2F%2Fwww.thedavidgreengroup.com%2Fblog%2F%20and%20I%20thought%20you%20would%20like%20to%20look%20at%20this%20blog%20entry%3A%0D%0Ahttps%3A%2F%2Fwww.thedavidgreengroup.com%2Fblog%2Fhttpswwwsimplifyingthemarketcomen20221020whats-ahead-for-home-pricesa713258-9a8342bcf821027012880bf1.html "Send a link to post via Email")[](https://www.thedavidgreengroup.com/blog/httpswwwsimplifyingthemarketcomen20221020whats-ahead-for-home-pricesa713258-9a8342bcf821027012880bf1/print.html "Opens new window with print ready page") ### Leave A Comment Leave text box empty Full Name\- required Email Address\- required Website Link e.g. yourwebsitename.com Comment\- required Submit Comment Please note that your email address is kept private upon posting. Message us ··· Chatra AS  Alexandra Salmon DG  David Green Ask us anything – we’ll get back to you here or by email. [We run on Chatra](https://chatra.com/?utm_source=logo_f&utm_campaign=US_www.thedavidgreengroup.com&utm_medium=selfie_en_get) reCAPTCHA Recaptcha requires verification. [Privacy](https://www.google.com/intl/en/policies/privacy/) - [Terms](https://www.google.com/intl/en/policies/terms/) protected by **reCAPTCHA** [Privacy](https://www.google.com/intl/en/policies/privacy/) - [Terms](https://www.google.com/intl/en/policies/terms/)