Home Prices in 2023: What's Next

In the past year, there has been a lot of debate about home prices. While some have predicted a significant drop in prices like in 2008, this hasn't happened. Others have forecasted slight appreciation or depreciation depending on the region of the country. As we approach the spring real estate market, experts continue to make predictions about home prices for the rest of the year and beyond.

According to Selma Hepp, Chief Economist at CoreLogic, recent mortgage rate volatility highlights the uncertainty that remains, but the continued shortage of homes for sale is likely to keep price declines modest, projected to top out at 3% peak to trough.

In addition, a panel of over 100 economists, investment strategists, and housing market analysts surveyed by Pulsenomics quarterly predict future home prices in the United States over the next five years.

Given this information and expert opinions on home prices, you may be wondering whether you should buy a home this spring. Here are three reasons why you should consider making a move:

First, buying a home allows you to escape the cycle of rising rents. Over the past several decades, the median price of rent has consistently risen, making homeownership a more appealing option.

Second, homeownership serves as a hedge against inflation. By buying a home with a fixed-rate mortgage, you can secure your housing payment, ensuring that it won't increase as it would if you rented.

Finally, homeownership is a powerful wealth-building tool. The average net worth of a homeowner is significantly higher than that of a renter.

Experts predict a slight price depreciation in the housing market this year, followed by steady appreciation. Before making a decision to purchase a home, it's essential to have all the facts and an expert on your side.