What Experts Say Will Happen with Home Prices Next Year

KeepingCurrentMatters September 21, 2022

Experts are starting to make their 2023 home price forecasts. As they do, most agree homes will continue to gain value, just at a slower pace. Over the past couple of years, home prices have risen at an unsustainable rate, leaving many to wonder how long it would last. If you’re asking yourself: what’s ahead for the price of my home, know that experts are now answering this question, and it is welcoming 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%. For 2023, the average of six major forecasters noted below is 2.5%. While one, Zelman & Associates, is calling for depreciation, 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.

To understand why experts are calling for appreciation next year, look to the economics of supply and demand. Dave Ramsey, Financial Expert, says this:

“The root issue of what drives house prices almost always is supply and demand . . .”   "

Two things are driving home prices upward. First, the undersupply of homes on the market is an issue we continue to face in this country. We still don’t have enough homes on the market for the number of people that want to buy them. To further that point, we’re still in a sellers’ market nationally, and in that scenario, home prices tend to appreciate.

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."next year, although at a slower pace than the previous three years. The reason for this is simple. The dynamics of supply and demand are playing out in real estate and will continue for many years to come

Recent Blog Posts

8 Interior Design Trends Shaping 2024’s Luxury Homes

The world of luxury home design is ever-evolving – and 2024 is no exception

6 Takeaways from the Christie’s International Real Estate 2024 Luxury Forecast

From the rise of ‘quiet luxury’ to the growing influence of Gen Z, Christie’s International Real Estate identified several trends that are shaping the luxury real esta… Read more

Austin ranked the No. 1 Best Performing City for the first time since 2013

The Austin metro area earned a top ranking from the Milken Institute’s 2024 report — here’s how we got here.

@properties lone star Christie’s International Real Estate launches new Sports & Entertainment division working with athletes and entertainers.

The Dallas and Austin-based global network will allow athletes, entertainers and others to more seamlessly find homes across the world, with agents who specialize in m… Read more

10 Agents in Texas Named to the Christie’s International Real Estate 2024 Masters Circle

10 premier real estate agents from Dallas and Austin have been named to the Christie’s International Real Estate 2024 Masters Circle.

Christie’s International Real Estate to Launch Luxury Austin Brokerage

Christie’s International Real Estate, the world’s preeminent luxury real estate brand, will enter the Austin, Texas market this fall with the launch of a new affiliate.

Facelifting a Kitchen for a Fresh Look

A modern door example is something that has squared profiles and preferably, not knotty wood. 

Buyer Traffic is Still Stronger Than the Norm

Don’t put off your plans because you’re worried no one will buy your home.

Property Tax Relief Bill Moves Through Texas Legislature

Texas law, there is a 10% appraisal cap for homeowners and no cap for owners of commercial property.

Work With Us

Monica distinguishes herself as an exceptional professional in the real estate industry, consistently exceeding all expectations by delivering unparalleled service. Leveraging her extensive market expertise, Monica excels in optimizing property market values when entrusted to list or search for a property. Whether you're interested in buying or selling, Monica collaborates closely with clients to pinpoint their ideal properties, secure the most advantageous deals, and consistently provide a truly FABulous real estate experience.