The question on everyone's mind is what's happening across the country in regards to home prices? Are we going up or down? Buyers are wondering, should I wait to buy a house? Are prices going down? Sellers are wondering, should I wait to sell because prices may go up?
Hi, I'm Danielle Scott with Keller Williams Realty. I know, I get it. With all the negative press out there, it's hard to know who to believe. Let's look at what the experts are saying and what is actually happening right now. A report that came out from the National Association of Realtors shows that we have an average of 3.6% increase across the United States in home prices. That is considered normal appreciation.
Here's the deal. Yes, we've seen higher over the past few years and that is because we were recovering from the crash. You can also see by this graph, for year over year change in price, we are seeing an average of three to 7.9% increase in almost all areas across the United States. Now, that's what's happening now but what's in store for our future? Well, let's see what the experts are forecasting.
The Home Price Expectations Survey, which is a survey made up of a nationwide panel of over 100 economists, real estate experts and investment and market strategists are predicting cumulative appreciation through 2023. We've got the aggressive ones who are predicting about 28.3%, the in-betweeners, who are anticipating 17% and the super conservative, who are predicting an overall cumulative appreciation of about 6.5%. So the experts are anticipating a slow and steady, normal appreciation of home prices over the next five years.
So if you're thinking of buying, it doesn't look like home prices are going down anytime soon, according to the experts. And if you're wanting to sell, they are going up, but so is the house you are going to purchase.
Let's not forget about the interest rates and how they effect buying and selling. According to the experts, like Fannie Mae, Freddie Mac, the Mortgage Broker's Association and NAR, they are predicting interest rates to slightly increase through quarter four. So remember, buyers and sellers, as interest rates increase, you need to think about how they effect what your mortgage payment will be and also, how many people will be able to qualify to purchase your home.
Buyers, remember as interest rates increase, so does your payment. Sellers, you need to be aware that the number of people who can qualify to buy your home actually goes down as interest rates increase. So there you have it. The housing market is looking good. As always, feel free to reach out to me for anything community or real estate related.
Let's make it a great home buying and selling day.