House Market Prediction
I will show you that a slowing housing market is a good thing.
The US appreciation rate is at 19%. The average appreciation rate since the ’90s is 4%.
The past several years have yielded extremely high appreciation rates. That seems great if you’re a homeowner. However, it’s not sustainable.
For example, take a home that’s $500K. If you appreciate this at 19% for 5 years, it pushes the home price to almost $1.2 million. How many average home buyers do you know can afford this?
A slowing housing market is good news to help slow inflation and the economy.
This house market prediction for 2023 is that home appreciation, and values will continue to slow. Mortgage interest rates will most likely rise a bit more. Appreciation slowing does not mean that home values will decrease. It just means that the rate they increase in value will return to more normal rates.
