The latest data from CoreLogic and Zillow shows that the market is expected to continue to appreciate in the coming years, though not at the breakneck pace of 2020 and 2021. According to CoreLogic’s Home Price Index, home values increased by 6.9% in December 2022 compared to December 2021, and are projected to rise by an additional 3% for the year 2023. There may be a seasonal dip January and February, the forecast for the rest of the year is optimistic.
These findings are in line with Zillow and Pulsenomics’ survey, which found that expert respondents expect home appreciation to continue at a moderately strong pace over the next five years, with an average cumulative increase of 23.3%. This is great news for homeowners and potential buyers, as it suggests that the housing market will remain a solid leveraged investment for years to come.
While the data is encouraging, it’s worth noting that the Federal Reserve is keeping a close eye on inflation. In a recent statement, Fed Chair Jerome Powell indicated that the Fed would be data dependent in evaluating how to best combat inflation. This followed similar remarks from the Bank of England and European Central Bank, which suggest that there continues to be a global concern about rising inflation.
Overall, the latest data from CoreLogic and Zillow suggests that the housing market is on a positive trajectory, with continued appreciation expected in the coming years. However, it’s important to stay informed about broader economic trends and shifts in regulation that could impact the industry. As always, it’s important to carefully consider your individual circumstances before making any significant investments in the housing market. Reach out today in order to discuss those individual circumstances.