U.S Home Prices to Fall by 4.5% in 2023

U.S. home prices are forecast to decline modestly this year and by less than previously thought as demand has declined only slightly.

This is despite expectations that interest rates are further to rise, a poll has suggested.

Normally, interest rate-sensitive home prices have only fallen about 6% from their recent peak, although the Federal Reserve is expected to deliver at least two more rate hikes, having already raised its key interest rate by 450 basis points from near-zero in just a year, a Reuters poll showed.

The decline has hardly dented a market, following a surge of more than 45% in average house prices since 2020 as buyers rushed in to avoid missing out, while people who could not afford to buy have been left paying higher rents.

Reuters/Hauwa Abu