What is on the Horizon for Home Prices?
As competition in the housing market has cooled in response to a large and quick increase in mortgage interest rates price appreciation has cooled off as well. If you have been reading any of the real estate news headlines you may be seeing contradicting opinions on where the housing market is headed especially when it comes to the current value of homes. But how do you know what you can trust? Which opinion should you consider? Where are home prices most likely headed in the near future?
As there are several different opinions depending on who you ask, the most- likely outcome is that reality may settle somewhere in the middle of these expert opinions. Across the country, we could probably see a combination of both slight appreciation and maybe some slight depreciation when it comes to home values.
What real estate market analysts are saying about home prices over the next year
Most up-to-date projections by real estate market experts are showing that projections are heading for continued home price appreciation. This appreciation is not expected to see giant increases from the last couple of years rather it is expected to be more moderate and at what is considered a more normal rate of increase. There are a few experts that say home prices will see a depreciation in value but there are fewer experts that agree with this projection. And those that believe we will see home prices take a dip believe that it will not be a huge decrease.
Taking an average of both of these opinions, where you use the actual projected numerical rate of increase put out by experts the most likely outcome is that home price appreciation will be at almost 0% over the next year.
What can you take away from differing opinions?
Experts are divided on what is truly ahead for home prices over the next year it is likely that some markets might see a slight decrease and some markets may see a steady rate of continued increase. But in a majority, most markets may see that home prices remain fairly steady. True projections are better looked at for local markets where you can analyze more specific conditions. So to get a true and clear picture of where home prices are headed in the area where you live if you were hoping to sell a home or in the area where you hope to purchase it is always worth talking over with an expert local real estate agent in that area.
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