We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. Learn more.

Here's Where Home Prices Are Heading This Summer, According to Experts

- Eddie Lee / Money; Getty Images
Eddie Lee / Money; Getty Images

The real estate market has lost steam in the first months of 2023, and a new forecast says U.S. home prices could soon sink to 5% below year-ago levels.

Home prices, which soared for most of the pandemic, are in the midst of their biggest decline since 2012. Redfin data shows the median sale price in the U.S. was $400,528 in March, 3.3% lower than the median in March 2022.

Vanguard, an asset management firm, said in a new report it now expects home prices to fall further heading into the halfway point of the year.

There are many reasons for the slump in prices. Some prospective buyers are waiting to make their home purchase until mortgage rates fall, which is reducing demand for homes and allowing for prices to decline.

Complicating matters, the supply of homes for sale is low largely because many owners feel trapped in their current residences because they're locked in with low mortgage rates. These factors are all making the market difficult for would-be homebuyers and sellers alike.

“The housing downturn is part of the reason why we view a mild U.S. recession in 2023 as most likely,” the Vanguard report said. However, the company expects the housing market to start rebounding in the back half of the year, and to keep rising into 2024 and 2025.

Ads by Money. We may be compensated if you click this ad.Ad
Shopping for a new home? Find out how much you can afford today.
Mortgage Experts at Rocket Mortgage (NMLS #3030) are available to get you started on your home-buying journey with solid advice and priceless information. To find out more, click on your state today.
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas
View Rates

What experts say

The economists at Vanguard aren’t the only housing experts who expect home prices to keep falling in 2023.

Ads by Money. We may be compensated if you click this ad.Ad
Buy your new home with more convenience and less hassle
A Mortgage Expert at Rocket Mortgage (NMLS #3030) can lend you a hand for a smoother process. Your dream home is possible. Click below to make it happen.
View Rates

More from Money:

The Best Mortgage Lenders of 2023

9 Best Home Equity Loans of April 2023

The 9 Best Moving Companies of 2023

Tags