After all, house prices haven't fallen

during the fourth quarter of last year, many real estate market experts predicted that house prices would fall this year. Here are some of those predictions:

Jeremy Siegel, Russell E. Palmer Emeritus Professor of Finance at the Wharton School of Business:

"I hope house prices fall from 10% to 15%and house prices are accelerating on the downside."

Mark ZandiChief Economist at Moody's Analytics:

"Fasten your seat belts. Assuming rates remain close to the current 6.5% and the economy avoids recession, national house prices would will fall by almost 10% from peak to trough. Most of these falls will happen sooner or later. And house prices will fall by 20 % if there is a typical recession."

Goldman Sachs:

"Housing is already cooling in the US, according to July data released last week. As interest rates rise higher and higher, Goldman Sachs Research's G-10 home price model suggests home prices are cooling. homes will fall by around 5% to 10% from the peak in the US. . . . Economists at Goldman Sachs Research say there are risks that real estate markets could fall more than the model suggests."

The bad news: it's shaken consumer confidence

These forecasts cast doubt in the minds of many consumers about the strength of the residential real estate market.

Evidence of this can be seen in Fannie Mae's December Consumer Confidence Survey.

It showed that a higher percentage of Americans believed that house prices would fall over the next 12 months than in any other December in the survey's history (see graph below).

This caused people to hesitate about their plans to buy or sell homes as we entered the new year.

[ipt_fsqm_form id="8″]

The good news: house prices have never fallen

However, house prices have not fallen and seem to be already recovering of the minimal depreciation experienced over the last few months.

In a recently released report,Goldman Sachs explained:

"The global housing market appears to be stabilizing faster than expected, despite months of rising mortgage rates, according to Goldman Sachs Research.House prices are defying expectations and are rising in major economies such as the US.,. . . "

These claims of Goldman Sachswere verified by the release last week of two real estate price indices: Case-Shiller and FHFA.

Here are the figures that each person reported:

House values seem to have turned the corner and are rising again.

Summary

[mpc_alert preset="mpc_preset_21" disable_icon="true" icon="ti ti-face-smile" icon_color="#f8bf4d" icon_size="28" icon_background_color="#f3f3f3" icon_border_css="border-color:#f8bf4d;border-style:solid;border-radius:0px;" font_preset="mpc_preset_13" font_color="#5555" font_size="18" font_transform="uppercase" font_align="left" content_border_divider="true" content_border_css="border-top:0px;border-right:0px;border-bottom:0px;border-left:0px;border-color:#88d282;border-style:solid;border-radius:0px;" content_padding_divider="true" content_padding_css="padding-top:25px;padding-right:25px;padding-bottom:25px;padding-left:25px;" background_color="#f7f7f7" border_divider="true" border_css="border-top:5px;border-right:0px;border-bottom:0px;border-left:0px;border-color:#f8bf4d;border-style:double;border-radius:0px;" padding_divider="true" margin_divider="true" margin_css="margin-bottom:30px;" mpc_ribbon__disable="true"]When predictions of significant house price depreciation were made last fall,they were made with megaphones. Mass media, industry newspapers and podcasts all broadcast the news of an imminent fall in prices. Now, meteorologists are saying that the worst is over and it was nowhere near as bad as they originally projected. However, they're whispering the news instead of using megaphones. As real estate professionals, it is our responsibility - some might say duty - to correct this narrative in the minds of the American consumer.[/mpc_alert][mpc_alert preset="mpc_preset_19" icon="fa fa-dollar" icon_color="#df8384" icon_size="28" icon_background_color="#f3f3f3" icon_border_divider="true" icon_border_css="border-top:0px;border-right:0px;border-bottom:0px;border-left:5px;border-color:#df8384;border-style:solid;border-radius:0px;" icon_padding_divider="true" icon_padding_css="padding-top:25px;padding-right:25px;padding-bottom:25px;padding-left:25px;" font_preset="mpc_preset_13" font_color="#5555" font_size="18" font_transform="uppercase" font_align="left" content_border_css="border-width:0px;border-radius:0px;" content_padding_divider="true" content_padding_css="padding-top:25px;padding-right:25px;padding-bottom:25px;padding-left:25px;" enable_dismiss="true" dismiss_position="corner" dismiss_icon="eti eti_close" dismiss_icon_color="#df8384" dismiss_icon_size="22" dismiss_background="#f3f3f3" dismiss_padding_divider="true" dismiss_padding_css="padding-top:4px;padding-right:4px;padding-bottom:5px;padding-left:5px;" dismiss_margin_divider="true" dismiss_margin_css="margin-top:17px;margin-left:-17px;" hover_dismiss_color="#8c8c8c" background_color="#f7f7f7" border_css="border-width:0px;border-radius:0px;" padding_divider="true" margin_divider="true" margin_css="margin-bottom:30px;"]To find out the forecast for the exchange rate, click here[/mpc_alert]

Any doubts?

Now that you've understood that it doesn't make sense to panic without consulting an expert, we can help you understand the behavior of the real estate market and consider investing in vacation homes in Orlando.

To make the most of all the tips we've given you and go even deeper, you can talk directly to our relationship agents. They are always happy to talk to you to answer any questions you may have about investing in Florida.

[mpc_button mpc_tooltip__text="SW52aXN0YSUyMG5vJTIwc2VjdG9yJTBBaW1vYmlsaWFyaW8lMjBuYSUyMEZsb3JpZGE="]
[mpc_button url="url:http%3A%2F%2Fwww2.thefloridalounge.com%2Fagentes-de-relacionamentos|||" font_color="#ffffff" title="Invista no setor imobiliario na Florida"]

Did you like the article? Keep an eye on our blog! Looking to live or invest in real estate in Florida? Check out the list of houses for sale in Florida that we've selected for you!

Getting your Trinity Audio player ready...