2022 To 2026 Housing Market Predictions

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2022 To 2026 Housing Market Predictions

Jan 17, 2023 | News | 0 comments

Every year, the housing market can undergo drastic changes. Considering that past performance doesn’t guarantee future performance, it would be a good time to know the housing market predictions for 2023 to 2026.

Market trends and predictions for 2023 are positive, with demand exceeding supply in the real estate market, according to the National Association of Realtors (NAR).

Nevertheless, different perspectives exist regarding the housing market’s future as presented below.

2023 Housing Market Predictions

In the next 12 months ending September 2023, Zillow predicts a 1.3 increase in home values. According to the company, there are also “significant downside risks to home sales volumes in 2023” based on the pace of pending home sales activity and mortgage applications.

According to CoreLogic Chief Economist Selma Happ, home prices could stabilize in 2023 due to a combination of a shrinking housing inventory, lower mortgage rates, and improved economic data.

2024 Housing Market Predictions

A Zillow survey suggests that the real estate market will return to pre-pandemic levels in 2024, and first-time buyers will regain market share. Also, Capital Economics, a leading research firm, predicts an increase of 3 percent in housing prices by 2024.

There has also been a housing forecast issued by the Wall Street bank Goldman Sachs. Despite an expected 5-10 percent drop in home prices over the next year, the firm predicts that the market will reach its bottom in 2023. It is expected that prices will level off in 2024, staying stable through mid-year. It is predicted that housing prices will slowly recover in 2024, according to the bank.

2025 Housing Market Predictions

As per a Zillow poll conducted in 2022, housing inventories are expected to increase by 12 percent in 2025, giving buyers more leverage. According to Zillow, 13 percent of respondents expect homebuyers to be in charge in 2025.

2026 Housing Market Predictions

According to Zillow’s home price expectancy poll of economists and real estate experts, home prices are expected to rise 48.6 percent over the next four years. Those with a more conservative outlook predict modest growth of 10.3 percent during the same period. The same survey found that only 8 percent of respondents expected the housing market to favor home buyers in 2026.