The Housing Market Didn't Crash After All
Remember all those housing experts who were predicting a major crash in home prices this year? Yeah, well, turns out they might have been a little off the mark. Here's the scoop on what went down. Jeremy Siegel, the Russell E. Palmer Professor Emeritus of Finance at the Wharton School of Business, had this to say: "I expect housing prices fall 10% to 15%, and the housing prices are accelerating on the downside." Mark Zandi, the Chief Economist at Moody's Analytics, chimed in too. According to him, assuming the economy manages to avoid a recession and interest rates stay around 6.5%, national house prices could fall nearly 10% from their peak. And if there's a typical recession, brace yourself, because he thinks prices could drop as much as 20%. Even Goldman Sachs jumped on the doom-and-gloom bandwagon, stating, "Housing is already cooling in the U.S., according to July data that was reported last week. As interest rates climb steadily higher, Goldman Sachs Research's G-10 home price model suggests home prices will decline by around 5% to 10% from the peak in the U.S.... Economists at Goldman Sachs Research say there are risks that housing markets could decline more than their model suggests." Naturally, these predictions shook up consumer confidence big time. The December Consumer Confidence Survey from Fannie Mae revealed that more Americans than ever before believed home prices would drop in the next 12 months. That uncertainty led people to put their homebuying or selling plans on hold as we rang in the new year. But here's where things get interesting. Despite all the gloomy forecasts, home prices didn't actually crash. In fact, they've started to bounce back from the minimal depreciation they experienced over the past few months. According to a fresh report from Goldman Sachs, the global housing market is stabilizing faster than expected, including in major economies like the U.S. housing prices are defying expectations and on the rise. Goldman Sachs isn't the only one saying this. Case-Shiller and the FHFA recently released two indexes on home prices, and both indicate that home values have made a turnaround and are heading back up. Here are the numbers each reported: So, here's the bottom line. Last fall, everyone was shouting from the rooftops about how home prices were about to skyrocket. But now, those same forecasters are admitting that it wasn't as bad as they originally thought. The crash they predicted never happened. However, they're not exactly broadcasting this news anymore. It's more like a quiet whisper. As real estate professionals and advisors, we have a responsibility, some might even call it a duty, to set the record straight and make sure the American consumer understands the real story. Graham Team Real Estate • (702) 930-9551 • Team@grahamteamnv.com Instagram | Facebook | YouTube | LinkedIn | TikTok 980 American Pacific Dr. Ste. 111 Henderson, NV 89014
This week in housing: January 2, 2023 | Single-Family Homes
This week in housing for single-family units in the Las Vegas Valley 📉Inventory dropped for 4th consecutive month📈$430,000 median home price, same place we began 2022December’s drop in inventory was pretty significant. The number of units sold has been flat since October. The inventory reduction was due to the lower number of listings. Browse Listings December 2022 Recap | Single-Family Homes in the Las Vegas Valley Is owning your own home a goal of yours this 2023? Let’s turn your goals into reality and get you on the journey of homeownership today!📲 702-930-9551📧 Team@GrahamTeamNV.com🔗 www.GrahamTeamnNV.com📍 980 American Pacific Dr. Ste. 111
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