Home Price Headlines May Not be Telling The Whole Story

Despite Fannie Mae's latest data showing that 23% of Americans believe home prices will fall in the next year, it remains unclear why roughly one in four people feel this way.

The negative talk about home prices over the past year has had a significant impact on Americans' perceptions. Since late 2022, the media has fueled fears of a housing market crash, and these concerns persist. You may hear people in your own life express concerns about home prices, or see on social media that some influencers are predicting a sharp decline in prices.

If you believe home prices will fall, ask yourself: is clickbait headlines and social media or a trusted housing market expert a more reliable source of information?

The simplest solution is to heed the advice of real estate professionals who specialize in residential properties.

Here is the latest and most reliable housing market data. Housing experts agree that national home prices dipped slightly in late 2022, but the decline was short-lived. Data shows that prices have already rebounded in 2023. (See graph below.)

Other housing market experts are also reporting a rebound in home prices. This is evident in the data from across the industry. As a result, many forecasts now project that home prices will be positive this year, rather than negative. The graph below shows the latest forecasts from several organizations:

What's significant to highlight is that only a few weeks ago, Fannie Mae's prediction for 2023 indicated a 3.9% appreciation in home prices. However, in the most recent forecast, this projection was revised from 3.9% to 6.7% for the year. This notable increase underscores the high level of confidence experts have in the positive trajectory of home prices this year.

Therefore, if you hold the belief that home prices are declining, it might be advisable to seek insights from experts instead, as their consensus indicates that prices are not decreasing but, in fact, on the rise.

Bottom Line

Recent media coverage of home prices has been misleading, and this has created uncertainty and anxiety among potential homebuyers. It is important to be discerning about the information you consume and to seek out reliable sources.

For reliable information on home prices, trust real estate experts. Their data shows prices are rebounding and will be positive this year. Contact a local real estate agent to learn more about the market in your area.