Here’s what the experts had to say about 2023’s housing market.

As we reflect on the fourth quarter of 2022, numerous housing experts and economists predicted a significant nosedive in home prices for 2023. Let's take a look at some of their thoughts and what they mean for the future of our market.

Jeremy Siegel, the Russell E Palmer Professor Emeritus of Finance at the Wharton School of Business, anticipated a 10% to 15% decline in housing prices, stating that the downward trend is gaining momentum.

Mark Zandi, the Chief Economist at Moody's Analytics, suggested that assuming interest rates remain around 6% and the economy avoids a recession, national house prices could fall by nearly 10% from their peak.

Additionally, Goldman Sachs noted that housing in the United States is already cooling as interest rates rise steadily. Their G10 home price model projected a decline of approximately 5% to 10% from the price peak.

“House prices are rising in major economies, such as the United States.”

This all sounds pretty bad, but the good news is that these predictions did not materialize. Goldman Sachs recently reported that the global housing market is stabilizing more rapidly than expected, defying expectations despite months of rising mortgage rates. House prices are rising in major economies, including the United States, as supported by various housing indexes.

While there was a slight decline in housing prices over the past few months, which lasted for around four to six months, the market has started shifting back into a positive trajectory during the spring and summer months. In May, the greater Kalamazoo market even reached the highest average sale price on record, highlighting a positive trend.

So, what does this mean for buyers and sellers? It's a great question, and everyone's circumstances are unique. I would be delighted to have a conversation with you to discuss your experiences and goals, enabling us to determine the right plan for your future. Feel free to reach me at (269) 350-5514 or via email at sold@veenstrateam.com. Have a great day!