In the latter part of the previous year, there were speculations among housing experts that home prices would experience a dramatic crash in the year 2023. These forecasts quickly gained traction in the media, resulting in alarming headlines and an overall sense of pessimism surrounding the housing market. Consequently, many individuals began to doubt the stability of the residential real estate sector.

If you found yourself questioning whether to postpone your plans to move due to this negative news coverage, it's crucial to take a closer look at the facts.

Home Prices Defied the Odds

Don't be swayed by sensational headlines. When we examine the factual data, it becomes evident that home prices displayed remarkable resilience and exceeded expectations, despite the media's ominous predictions. Take a look at the graph below to see the actual performance of home prices:

This graph uses reports from three trusted sources to clearly illustrate prices have already rebounded after experiencing only slight declines nationally. That’s a far cry from the crash so many articles called for.

The declines that did happen (shown in red), weren’t drastic but were short-lived. As Nicole Friedman, a reporter at the Wall Street Journal (WSJ), says:

“Home prices aren’t falling anymore. . . The surprisingly quick recovery suggests that the residential real-estate downturn is turning out to be shorter and shallower than many housing economists expected . . .”

Even though some media coverage made a big deal about home prices pulling back, the slight correction that happened is already in the rearview mirror. Basically, this data shows you home prices aren’t falling anymore – they’re actually going back up.

What’s Next for Home Prices?

The consensus from experts is that home price growth will continue in the years ahead and is returning to normal levels for the market. That means we’ll still see home prices appreciating, just at a slower pace than the last few years – and that’s a good thing.