Veros Real Estate Solutions Expects Home Prices to Turn Negative in 2023

Veros Real Estate Solutions expects home prices to turn negative, falling an average of 0.5% over the next 12 months, the first negative forecast in more than a decade.

According to Veros’s VeroFORECAST for the fourth quarter of 2022, a quarterly report that assesses home prices in more than 300 metropolitan areas, the negative forecast is sharply lower than the forecast of 1.5 percent annual growth a quarter earlier.

 Eric Fox, the chief economist for Veros, said that after the previous housing market collapse, annual predictions are expected to be negative every year. 

Although it is expected to be written off on average now, the basic elements of the US housing market in 2023 are much better than ten years ago. It will not repeat what we saw in 2007-2008. year.

Forecasters say that extreme depreciation is not expected at this time, although the weakness in the market is in stark contrast to what has been seen in previous years. 

The number of annual markets for annual depreciation is expected to increase from a few dozen last quarter updates to almost half of this updated market.

 The report states that many of them are expected to only have a slight depreciation for only one or two.

Fox also said that many of the big winners in housing markets over the past year or two are now expected to be worst-performing markets, including San Francisco; Seattle; Austin, Texas; Boise, Idaho; San Jose and Las Vegas p. 

All of these markets are expected to experience depreciation in the range of -5% to -7% over the next 12 months.

Veros predicts that many markets should do reasonably well with low single-digit gains. 

North Carolina had five markets in the top 10; two main markets – were Wichita, Kansas, and Lincoln, Nebraska. – Again, Top 5. 

Even in Fort Myers Area Florida, which was heavily hit by hurricane IAN, the rocket was in the top 5 markets in the country and limited supply.