Reality: Prices Are Increasing

According to the latest data from Fannie Mae, 23% of Americans still think home prices will go down over the next 12 months.

Why do roughly 1 in 4 people feel that way when the reality is very different?

It has a lot to do with all the negative talk about home prices over the past year. Since late 2022, the media has created a lot of fear about a price crash and those concerns are still lingering. You may be hearing people saying they’re worried about home prices or seeing on social media some influencers saying prices are going to come tumbling down.

We’ve even talked to several potential buyers, who tell us that they’re waiting until prices come down. (Or there’s a crash!)

If you’re someone who still thinks prices are going to fall, ask yourself this: Which is a more reliable source of information – clickbait headlines and social media or trusted experts on the housing market?

The answer is simple. Listen to the professionals, who specialize in the residential housing market.

So, here’s the latest data you can actually trust. Housing market experts acknowledge that nationally, prices did dip down slightly late last year, but that was short-lived. Data shows prices have already rebounded this year after that slight decline in 2022 (see graph below):

But it’s not just Fannie Mae that’s reporting this bounce back. Experts from across the industry are showing it in their data too. And that’s why so many forecasts now project home prices will net positive this year – not negative. The graph below helps prove this point with the latest forecasts from each organization:

What’s worth noting is that, just a few short weeks ago, the Fannie Mae forecast was for 3.9% appreciation in 2023. In the forecast that just came out, that projection was updated from 3.9% to 6.7% for the year. This increase goes to show just how confident experts are that home prices will net positive this year.

On Cape Cod, the median price for a single family home has risen $25,000 (YTD) from where it was a year ago (YTD).

So, if the evidence clearly shows that prices aren’t falling.

Please remember that the price of an individual home is influenced by a number of factors including its condition, how much updating is needed, and location. So, otherwise similar homes can sell for different prices. If one is less than the other, it doesn’t mean that prices are dropping.

Bottom Line

If you want up-to-date information without any spin, let’s talk. We have access to current data — not clickbait — to give you the most reliable picture of where the market is. Let’s connect at 508-360-5664 or [email protected].

Talk soon…

Mari and Hank