What's Happening with Home Prices?

If you're considering buying or selling a home this year, you might have questions about the current state of home prices as the market cools. Generally, experts do not expect prices to plummet; rather, how much they will moderate depends on local supply and demand. Home price appreciation will continue to differ from one area to another, particularly in markets that were previously overheated. Danielle Hale, Chief Economist at realtor.com, has commented on this: "The major question on the minds of homeowners and aspiring buyers alike is what will happen to home prices...Soaring prices were propelled by all-time low mortgage rates which are a thing of the past. As a result, home price growth is expected to continue slowing, dipping below its pre-pandemic average to 5.4% for 2023 as a whole."

Mark Fleming, Chief Economist at First American, has stated that house price appreciation has decreased in all 50 markets they track and the deceleration is more pronounced in areas that experienced the highest peak appreciation rates. Taylor Marr, Deputy Chief Economist at Redfin, believes that there will be no home price crash and demand is reducing supply which reduces downward pressure on prices. John Paulson, Founder of Paulson & Co., said housing may be a little frothy, and prices may come down or plateau. It is best to consult with a local real estate advisor to get an understanding of the trends in your specific market so you can make an informed decision when buying or selling a home.

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