Residential real estate worldwide is experiencing falling home prices for the first time in over a decade, and the US is not exempt. The US housing market has seen four consecutive months of home price declines, breaking a 124-month streak of positive growth. From June to October 2022, the Case-Shiller National Home Price Index recorded a 2.4% drop in US home prices, the second-biggest correction since WWII, but still mild compared to the 26% correction of 2007-2012.
Now, with US housing prices clearly in deflation mode, the question is how much of the Pandemic Housing Boom’s historic 41%-plus jump in home prices will be erased.
Experts Warn of Further Home Price Declines in 2023 as US Housing Market Shifts
Fortune has tracked down the latest housing forecasts from 27 leading US housing researchers to determine what to expect for national home prices in 2023. Of those researchers, four anticipate home prices to grow in 2023, while the other 23 believe they will continue to fall. Homeowners and investors will need to keep a close eye on the housing market in the coming year to gauge the impact on their financial situation.
For the first time in over a decade, residential real estate across the world has entered into a period of falling home prices, and the U.S. housing market is no exception. As of October 2022, U.S. home prices have fallen 2.4% over four consecutive months, marking the end of a historic 124-month streak of positive growth.
While this decline in home prices may be mild compared to the once-in-a-lifetime correction of 26% experienced between 2007 and 2012, it is a significant reversal from the heights of the Pandemic Housing Boom. Something big is happening in the U.S. housing market, and it has clearly slipped into deflation mode.
It remains to be seen just how much of the Pandemic Housing Boom’s historic jump in home prices will get erased. While some experts predict growth in 2023, the majority of the nation’s leading housing researchers expect further price declines.
Independent Opinion
As an independent journalist, I believe it’s important for readers to investigate the state of the U.S. housing market for themselves. If you’re considering buying or selling a home, it’s crucial to be informed about the current trends and potential risks. Don’t rely solely on the opinions of experts – do your own research and analysis to make informed decisions about your real estate investments.
