Experts are starting to make their 2023 Orcutt home price forecasts. As they do, most agree Orcutt homes will continue to gain value, just at a slower pace. Over the past couple of years, Orcutt home prices have risen at an unsustainable rate, leaving many to wonder how long it would last. If you’re asking yourself: what’s ahead for the price of my home, know that experts are now answering this question, and its welcome news for homeowners who may have been led by the media to believe their home would lose value.
Historically, home prices have appreciated at a rate near 4%. For 2023, the average of six major forecasters noted below is 2.5%. While one, Zelman & Associates, is calling for depreciation, the other five are calling for appreciation. The graph below outlines each expert forecast to show where they project home prices are going in the coming year.
To understand why experts are calling for appreciation next year, look to the economics of supply and demand. Dave Ramsey, Financial Expert, says this:
“The root issue of what drives house prices almost always is supply and demand . . .”
Two things are driving Orcutt home prices upward. First, the undersupply of homes on the market is an issue we continue to face in this country. We still don’t have enough homes on the market for the number of people that want to buy them. To further that point, we’re still in a sellers’ market nationally, and in that scenario, home prices tend to appreciate.
Second, millennials are moving through their peak homebuying years. Since they’re the largest demographic behind the baby boomers, demand isn’t going away any time soon.
Orcutt home prices have been on the rise for the past few years, and experts are predicting that the trend will continue in the coming year. However, they are expecting the rate of appreciation to slow down somewhat, as the market begins to reach a saturation point. The reason for this is simple. The dynamics of supply and demand are playing out in real estate and will continue for many years to come. Orcutt is a desirable location for many people, but there is only so much land available. As more and more people are priced out of other areas of Santa Barbara County, Orcutt will continue to be a popular destination. This increased demand will put upward pressure on prices, but at a slower rate than we have seen in recent years.
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