Will home prices appreciate in 2023? See this home price forecast.
Experts are starting to make their 2023 home price forecasts—and most agree homes will continue to gain value but at a much slower pace. In the past couple of years, home prices have risen at an unsustainable rate. In the southwest Ohio area, prices have historically appreciated at a rate near 3.5% to 3.8% historically.
The graph at 0:50 in the video shows the prediction of six major forecasters—a 2.5% average appreciation. Zelman Associates forecasts a depreciation, but the rest predict an appreciation.
To understand why experts are calling for appreciation next year, let’s look at the economics of supply and demand. First, the undersupply of homes on the market is an issue we continue to face in this country; we still don’t have enough homes on the market for the number of people that want to buy them. To further that point, we’re still in a seller’s market nationally, which is why home prices tend to appreciate. Second, millennials are moving through their peak homebuying years. Since they’re the largest demographic behind the baby boomers, demand isn’t going away anytime soon.
The bottom line is this: Experts are calling for home prices to appreciate next year, although at a slower pace than the previous three years. The reason for this is simple. The dynamics of supply and demand are playing out in real estate and will continue for many years to come.
Let me know if you have real estate needs. We’re here to walk you through the process and negotiate the best deal for you. If you have any questions, call or email me. I’m always happy to help!