What’s Ahead for Home Prices in Apple Valley,MN and Lakeville,MN?
As the housing market adjusts in response to the dramatic rise in mortgage rates, home price appreciation is adjusting as well. And if you’re following along with the headlines in the news, you’re also seeing a wide range of opinions predicting everything from falling home prices to ongoing appreciation. But what’s true for Apple Valley, MN and Lakeville, MN? What can you expect in your specific neighborhoods of Cobblestone Lake, Spirit of Brandtjen Farm, and Quarry Ponds?
Here’s a look at the latest expert projections so you have the best information possible today.
What the Experts Are Saying About Home Prices Next Year
The graph below shows the most up-to-date forecasts from five experts in the housing industry. These are the experts that have most recently updated their projections based on current market trends:
As the graph shows, the three blue bars represent experts calling for ongoing home price appreciation, just at a more moderate rate than recent years. The red bars on the graph are experts calling for home price depreciation.
While there isn’t a clear consensus, if you take the average (shown in green) of all five of these forecasts, the most likely outcome is, nationally, home price appreciation will be fairly flat next year. Locally, in the Cobblestone Lake, Spirit of Brandtjen Farm, and Quarry Ponds neighborhoods, specially for homes valued at $350K+ expect prices to decline. As a whole, for Apple Valley, MN and Lakeville, MN, homes below the 350K prices range will trend in line with experts’ predictions for the national average.
What Does This Mean?
Basically, experts are divided on what’s ahead for 2023. Home prices will likely depreciate slightly in some markets and will continue to gain ground in others. It all depends on the conditions in your local market, like how overheated that market was in recent years, current inventory levels, buyer demand, and more.
The good news is home prices are expected to return to normal levels of appreciation fairly quickly. The latest forecast from Wells Fargo shows that, while they feel prices will fall in 2023, they think prices will recover and net positive in 2024. That forecast calls for 3.1% appreciation in 2024, which is a number much more in line with the long-term average of 4% annual appreciation.
And the Home Price Expectation Survey (HPES) from Pulsenomics, a poll of over one hundred industry experts, also calls for ongoing appreciation of roughly 2.6 to 4% from 2024-2026. This goes to show, even if prices decline slightly next year, it’s not expected to be a lasting trend.
As Jason Lewris, Co-Founder and Chief Data Officer for Parcl, says:
“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”
Don’t let fear or uncertainty change your plans. If you’re unsure about where prices are headed or how to make sense of what’s going on in today’s housing market, reach out to a local real estate professional for the guidance you need each step of the way.
Bottom Line
The housing market is shifting, and it’s a confusing place right now if you are looking to sell. Let’s connect so you have a trusted real estate professional to help you make confident and informed decisions about what’s happening in our local market in Apple Valley,MN and Lakeville,MN, specifically if you live in the Cobblestone Lake, Spirit of Brandtjen Farm, and Quarry Ponds neighborhoods.
