BAM Key Details:
- New home price forecasts from NAR, CoreLogic and Zillow all indicate an expected increase in home values in the U.S. The predictions range from a 1.3% to 3.7% year-over-year increase in home values.
- CREA is forecasting a 4.8% decline in average home prices in Canada in 2023, but it expects a 4.7% recovery from 2023 to 2024.
NAR Economic Outlook
The March 2023 Economic Outlook from the National Association of REALTORS® shows past, current, and forecasted data for the U.S. economy and housing market.
NAR is forecasting that median existing home prices will increase by 1.3% year-over-year in Q1 of 2024 and a 1.7% annual increase in home prices in Q2 of 2023. Find all of NAR’s updated forecasts here.
CREA Resale Housing Market Forecast
The Canadian Real Estate Association (CREA) updated its forecast for sales activity and average home prices on April 14th. Its latest update indicates a 4.8% decline in national average home prices to $670,389 CAD in 2023.
From 2023 to 2024, however, CREA expects the average home price to recover by 4.7% to around $702,200, which would put the national average back on par with 2022.
Tom Storey breaks down CREA’s latest update here:
CoreLogic Home Price Insights
According to CoreLogic, U.S. home prices increased by 0.8% in February 2023 for the first month-over-month increase after seven months of decline.
And according to its forecast, prices may not just be stabilizing but on an upward swing once again. The CoreLogic HPI forecast indicates that home prices will increase by 3.7% from February 2023 to February 2024.
Byron Lazine recently gave a breakdown of CoreLogic’s updated forecast on the Hot Sheet. Skip ahead to 21:50 for more on CoreLogic’s predictions.
Zillow Home Values Index
According to the Zillow Home Values Index, the average home value in the U.S. was $334,269 in March, a value change of +5% over the past year. While home values have continuously risen year-over-year, the second half of 2022 saw a string of month-over-month declines that continued into 2023. March broke that trend, as home values increased from February’s average of $327,514.
Looking ahead, Zillow’s latest 1-year Market Forecast shows a 1.9% increase in home values over the next year.
For more on Zillow’s updated forecast, tune in at 1:00 of this Hot Sheet:
Home price forecasts are consistently being updated. With today’s low inventory and rate volatility, you must continually update your clients with the most recent information. From there, educate them on how to find properties that fit their monthly budget instead of stretching themselves too thin. By staying informed—and keeping your clients informed—you will build a reputation as a knowledgeable and trustworthy professional.