Ask 12 experts in real estate about the future of home values and you’ll probably get 20 or more different opinions. With mortgage rates rising, the housing market is expected to slow down, but that doesn’t mean that home values are going to decline. Here’s one prediction from GOBankingRates about home values in 2023.
Predictions for Home Values
GOBankingRates used the median home value rate to predict what home valuations will do over the next year. The median home value is the property’s actual valuation, not the list price or home price. It’s interesting to note that there were no predictions in which home values would decline. In most states, home values should increase by 10% or more. Only three states, Louisiana, North Dakota, and Alaska, had predictions of less than 10%. Some states, Utah, Florida, and Arizona had a prediction of over 20% gain.
Here are some of the predictions:
- Texas – the median home value in 2022 is $290,527. The projected home growth is 15.29%.
- West Virginia, the state with the lowest median home value of $129,518 has a projected one-year growth rate of 10.39%.
- Tennessee – with a median home value of $276,250 in 2022, the projected growth rate is 18.19%.
- Florida – the 2022 median home value is $373,735. By 2023, the projected home value change is 22.04%.
- Hawaii – the state with the highest median home value of $972,147 has a projected growth rate of 16.65%.
This information is valuable for both homeowners and home buyers. Read the report and find your state here.
The real estate market is promising
Although there were concerns that the pandemic would cause a housing crash, what we’re seeing is much different. It’s not even the housing bubble of 2008. Housing prices are rising because of a lack of supply and increased demand. There’s less likelihood of foreclosure today than 15 years ago, due to more stringent requirements. The housing market looks good, not just into next year, but hopefully over the next decade and more.