What’s Ahead for Home Prices? Worried about selling in today’s market? Wondering how mortgage rates affect your home value? I represent home sellers on The Main Line who are asking the same questions. I understand that there is a lot of uncertainty in today’s market and I am here to relay some of the expert economist advice on what is ahead for home prices. The truth is experts are differing in their forecasts. Nar forecasts an increase in home prices by 1.3%, The mortgage brokers association predicts an increase by 2.8%, while Fannie Mae predicts a decreas by 1.5% and Zelman predicts a decrease by 4%. There is not a clear consensus on whether homes will appreciate or depreciate. However, according to the Wells Fargo forecast who also predict prices will depreciate slightly in 2023, they predict they will recover and net positive in 2024. Further, according to a Home Price Expectation Survey (HPES) from Pulsenomics,that polls over a hundred experts they estimate an appreciation of roughly 2.6 to 4% from 2024-2026. So if we see prices depreciate in 2023, experts predict that they will recover by 2024-2026. Why would we see a depreciation in 2023? In short, Mortgage rates are nearing 7% to offset inflation and there is more inventory coming to the market. What is really important as a takeaway to this information is also that these are national numbers and they do not relate exactly across markets. Where we see experts discuss home price depreciation, that is not across the board. For example, on The Main Line, my sellers are still getting asking price and above for their homes. We are seeing less deals without contingencies or inspections, but this is in line with a more normal market. My buyers were faced with a severe lack of inventory and now there are more homes coming to the market, but not in droves. If you are considering listing your home, I would do this now. Another consideration for my Main Line sellers, when we are discussing home buying, many Main Line buyers are moving from more expensive metro areas. They have more disposable income and are not relying on mortgage rates to make decisions for them. Bottom line, I have buyers for your home. Home value is really determined by what buyers are willing to pay, and buyers are willing to pay for home on the Main Line. If you are interested in listing your home for sale, contact me at the link below to see what your home is worth.
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