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In Today's Email

• Home price correction

• Housing forecasts

• High buyer demand

• Quick reads

• Executive summary

According to Zillow, Home Price Correction is Winding Down

CoreLogic: The real-estate data firm predicts that U.S. home prices will rise 3% between December 2022 and December 2023. (Here is CoreLogic's latest risk assessment for the nation's 392 largest regional housing markets.)

NAR: The trade group projects that existing home prices are poised to rise 1.2% in 2023 while mortgage rates will average 6.3%.

Zillow: Economists at the home listing site forecast that U.S. home values will rise 0.5% between January 2023 and January 2024. Below is their regional outlook.

Realtor.com: The economics team at Realtor.com predicts that the median price of existing homes will rise 5.4% in 2023 while mortgage rates average 7.4%.

Home.LLC: The firm predicts U.S. home prices will rise 4% in 2023.

A Closer Look at The Housing Forecasts

Peak to Trough continues to be manageable, especially in Groundfloor's key lending markets.

National Housing Metrics Show Buyer Demand is Positive

The following six graphs represent different metrics we study to measure buyer demand.

Percentage decrease over the last year

When home prices are decreasing at a slower rate, it can suggest a couple of things: (1) The market is stabilizing or (2) Demand is starting to outpace supply. This could be a good sign for sellers, as it may indicate that they can still get a good price for their home, while buyers may face less pressure to act quickly.

Inventory over the last 3 years

Inventory over the last year

Looking at both Inventory graphs, if the home inventory is on the decline, it suggests that there are fewer homes available for sale. This could be due to a variety of factors, such as a lack of new construction, or homeowners holding off on selling due to economic uncertainty.

Median price over the last year

Median price over the last 3 months

Looking at both Median Price graphs, with the median home price rising, it suggests that demand for homes is strong, and that there is competition among buyers for available properties.

Now, taking together all 6 graphs, these trends suggest a real estate market that is experiencing strong demand and limited supply. This could be good news for sellers, but could make it more challenging for buyers to find and afford their desired home.

Quick Reads Around The Block

• Housing Market: 6 Trends to Know for February 2023

• The Housing Market - What Recession?

• Where Are Markets HOT?

• Atlanta is The Place to be!

Executive Summary, From PD

Since the beginning of this year, the market has surprised most market participants as having much more Purchase demand than anticipated. It feels like this could be a warm spring buying season after all. Groundfloor will keep you posted!