During the fourth quarter of last year, many housing experts predicted home prices were
going to crash this year. Here are a few of those forecasts:
“I expect housing prices fall 10% to 15%, and the housing prices are accelerating on the
downside.”
- Jeremy Siegel, Russell E. Palmer Professor Emeritus of Finance at
the Wharton School of Business
"Buckle in. Assuming rates remain near their current 6.5% and the economy skirts
recession, then national house prices will fall almost 10% peak-to-trough. Most of those
declines will happen sooner rather than later. And house prices will fall 20% if there is a
typical recession.”
- Mark Zandi, Chief Economist at Moody’s Analytic
These forecasts put doubt in the minds of many consumers about the strength of the
residential real estate market. Evidence of this can be seen in the December Consumer
Confidence Survey from Fannie Mae. It The December Consumer Confidence Survey
showed a larger percentage of Americans believed home prices would fall over the next
12 months than in any other December in the history of the survey (see graph below).
However, home prices didn’t come crashing down and have rebounded from the
minimal reduction experienced late last year. Home values seem to have turned the
corner and are headed back up.
If now is a good time for you to buy or sell, contact us, we’re ready to go to work for you.
Graph courtesy of KeepingCurrentMatters.com
Lead Photo by JOSHUA COLEMAN on Unsplash
