Home Value and Sales Projection: July 2023 Insights
Insights from the Latest Research • Dated: August 21, 2023
The most recent projection highlights an anticipated appreciation of 5.8% in home values for the entirety of 2023.
The ongoing scarcity of homes available for purchase continues to drive housing prices upwards, a trend that persists despite the sustained prevalence of heightened mortgage rates.
For the upcoming year, the predictive analytics anticipate approximately 4.2 million transactions involving existing homes, indicating a significant 17% contraction when compared to the preceding year’s figures.
The current projection concerning the nation’s typical home value has been revised upwards due to the sustained scarcity in inventory conditions.
This landscape continues to exert upward pressure on housing prices, a phenomenon that persists despite the prevailing challenges related to affordability.
The forward-looking projection for the national Home Value Index indicates an anticipated conclusion to 2023 with a 5.8% increase from its initial point at the start of the year.
This marks an upward revision from the previous month’s projection, which initially pointed to a 5.5% expansion over the course of 2023.
Anticipated typical home value appreciation extends to 6.5% from July 2023 to July 2024.
Comparing July’s current listing statistics to those of the same period in 2019, only half the number of homes have been listed for sale this year.
Furthermore, the number of new listings introduced to the market in July is 29% lower than the historical average for this time of year prior to the onset of the pandemic.
This scarcity in available properties has given rise to heightened competition among prospective buyers for the limited homes that are on the market. Notably, homes that entered the “pending” status in July achieved this feat within a span of 12 days—a week and a half quicker than the typical timeline observed in 2018 and 2019.
The persisting conditions of limited housing inventory coupled with the sustained prevalence of elevated mortgage rates are anticipated to continue curbing sales volume in the imminent months.
The projection indicates that the year 2023 is poised to witness approximately 4.2 million home transactions, aligning with historical trends. However, this represents a significant decline of 17% compared to the transaction volume observed in 2022.