Towards the end of last year, a bunch of news stories were all about how home prices were gonna take a nosedive in 2023. Naturally, that got people all scared and wondering if we were in for a repeat of the real estate disaster in 2008. But guess what? Those headlines totally missed the mark.

So, basically, after the crazy rise in home prices during the 'unicorn' years, there was a little dip in prices, but it wasn't a major crash or anything. In fact, home prices held up pretty well, which surprised a lot of people.

Remember those predictions from late last year that said things were gonna be pretty gloomy? Well, turns out even the experts are admitting they were a bit too negative. Let's take a look at how their most recent forecasts stack up against those old ones to see just how much they've changed their tune.

Expert Home Price Forecasts: Then and Now

Hey there! So, this cool chart right here gives us an idea of what the housing market will look like in 2023. It shows us the original predictions made at the end of 2022, and also the latest revised forecasts for this year's end. Seven different organizations have shared their insights, so it's quite an informative visual! Take a look at the chart below to see the details.

Hey there! Take a look at the red in the middle column. It tells us that in every case, the experts initially predicted that home prices would go down. But if you shift your attention to the right column, you'll notice that all the experts have now adjusted their projections for the end of the year. They now expect prices to either stay the same or actually increase. It's a big shift from the original gloomy forecasts!

You know what's interesting? Home prices these days just don't seem to want to drop, no matter what. According to Odeta Kushi, who knows a thing or two about this stuff, she's the Deputy Chief Economist at First American, there are actually quite a few reasons for this phenomenon.

““One thing is for sure, having long-term, fixed-rate debt in the U.S. protects homeowners from payment shock, acts as an inflation hedge - your primary household expense doesn’t change when inflation rises - and is a reason why home prices in the U.S. are downside sticky.””

— Odeta Kushi, Deputy Chief Economist at First American

A Look Forward To Get Ahead of the Next Headlines

Brace yourself for some misleading media coverage in the coming months. The thing is, home prices have a certain pattern of changing with the seasons, and unfortunately, the media tends to overlook that. But don't worry, I've got your back. I'm here to give you the lowdown so you can be prepared and not get swayed by all those negative headlines.

As we wind down towards the end of the year, the housing market tends to slow down, and that naturally has an impact on home prices. It's important to note that this doesn't mean that prices are going down. It simply means that they're not rising as rapidly as they were during the busiest time for buying homes.

When we talk about the deceleration of appreciation, it's important to understand that it's not the same as home prices depreciating. Let me break it down for you. Deceleration of appreciation means that the rate at which home prices are increasing is slowing down. It's like when you're driving and you take your foot off the gas pedal, you're still moving forward but at a slower pace. On the other hand, home prices depreciating means that the value of homes is actually going down. It's like when you're driving and you hit the brakes, you start moving backwards. So, while deceleration of appreciation might mean that home prices are not skyrocketing like they used to, it doesn't necessarily mean that they're going down in value.

Bottom Line

You know what's interesting? Those headlines we see all the time? Well, they actually have an effect on us, even if they're not entirely true. Remember when the media was saying that home prices were going to plummet at the end of last year? Yeah, turns out that didn't actually happen. Crazy, right? So, here's the deal: Let’s connect so I can be your go-to source for all things real estate. I'll provide you with reliable data and help you sort out fact from fiction. Trust me, you'll want someone you can rely on in this sea of information overload. Let's chat soon!