The sales prices of US homes have proved to be resilient over 2023
The sales prices of US homes have proved to be resilient over 2023. According to the latest data from Altos Research the median price of single family homes is $440,000.
Overall, slicing and dicing the numbers several ways shows pricing up 1%-3% from this point in 2022. As we look into pricing projections for the end of 2023 - there is a wide consensus that prices will be up 1%-2% in 2023 over 2022.
Rising interest rates have cooled demand, but at the same time supply has been very limited. This has kept prices steady for the year. This also keeps home equity near the highest levels in a generation. This gives a huge piece of mind for consumers - many with rising revolving debt levels.
Predicting housing prices into Q1 will depend on interest rates. Rising interest rates will surely have a negative impact on prices. If you believe rates will go down - housing prices should increase.