What’s Ahead for Home Prices?

This article is contributed by Laura Hertz, Loan Officer, CSMC Mortgage

If you’re asking yourself: what’s ahead for the price of my home, know that experts are now answering this question, and its welcome news for homeowners who may have been led by the media to believe their home would lose value.

Historically, home prices have appreciated at a rate near 4% per year. For 2023, the average of six major forecasters noted below is just 2.5% although one forecaster, Zelman & Associates, is calling for depreciation, while the other five are calling for appreciation. The graph below outlines each expert forecast to show where they project home prices are going in the coming year.

Two things are driving home prices upward. First, the undersupply of homes on the market is an issue we continue to face. We still don’t have enough homes on the market for the number of people that want to buy them. Second, millennials are moving through their peak homebuying years. Since they’re the largest demographic behind the baby boomers, demand isn’t going away any time soon. Here’s the bottom line: experts are calling for home prices to appreciate next year, although at a slower pace than the previous three years.

Source: Keeping Current Matters

The author, Laura Hertz, is a Loan Officer at CSMC Mortgage located in Westlake, California.  For more than 25-years, Laura has been a leading mortgage loan officer and she specializes in single-family and 1-to-4-unit residential properties.  For more information, contact Laura at (805) 724-0755 or laurahertz@csmcmortgage.com.

Equal Housing Lender. Loans made or arranged pursuant to the California Financing Law.