新报告的年代uggest Home Prices Could Begin Dropping SoonHome prices have skyrocketed over the past year, but experts expect a slight decline starting in 2023.
Home prices rose by 20.6% year-over-year in March of 2022, marking the largest increase in the 30 years of record-keeping, according to theJoint Center for Housing Studiestabulations of CoStar and CoreLogic Case-Shiller Home Price Indices data.
Rent prices have also skyrocketed, further widening the wealth gap between owners and renters in America, and makinghomeownershipout of reach for nearly four million Americans in the past year. The annual income required to qualify for a median-priced home has increased by $28,000 since last year, according toHarvard researchers.
But things might change soon. With an increased number of potential buyers being closed off from the market, "sellers will eventually see the need to accept a lower price for their property,"said senior property economist Matthew Pointon. Despite mounting pressure on the housing market, the mortgage rate has surged over 6% which could signify that home prices are likely to begin to drop.
Capital Economicspredicts a 5% decrease in home prices in 2023, followed by a "gradual recovery" to 3% by 2024. As the housing market slows, real estate firms have begunlaying off workersby the hundreds as they anticipate a downturn and decline in home buying.
Related:Accessibility (or Lack Thereof) in Today's Housing Market
Still, withongoing supply chain constraints,inflation, andinitiatives by the Fedto keep it under control, home prices are still sky-high. And if the economy dips into arecession, researchers warn that the spike of individuals priced out of ownership would turn "the recent uptick in housing insecurity into a wave."
Related:How to Save the Dying American Dream of Homeownership
