Home prices are still rising despite high interest rates and a tough market. The speaker predicts a rebound in early 2023 when rates drop, arguing that real estate holds its value through economic downturns.
I think as we go right through the thick of a very difficult housing market, it's important to continue to see how resilient home values are. Sure, the average market across the country last year was up 20% in value and this year it's up 11 to 13% in value. But it's still up. And we've seen the worst year for interest rates on record, pretty much. So it's calmed things down, but it hasn't made house values drop in any way. Sure, some of the hottest markets from last year have started to pull back a little. They might have lost 1% month over month, but they're still up on the year big time. And that's the important thing. So don't let the headlines, you'll mislead people to say home values are dropping. They're still going up in every metric that you look at, they're just not going up as fast. And as soon as interest rates continue to come down, which I've done a lot of work on that, you'll probably see really good news in interest rates the first quarter or two of 2023. Well, now people are able to afford higher prices on homes again, a lot more buyer competition comes in and push houses values up more and more, just like they did the last couple of years. This is just a little bit of a lull or a pause and then the activity will get rolling quite a bit coming spring houses are recession proof and this just shows why.
