If consumers were on a graph, and they are at least in the housing section of the Federal Reserve Bank of New York's Survey of Consumer Expectations, then they just took a hard right and headed down.
The one-year expectation of home price growth in consumers' own ZIP codes crashed from 7.0% in 2022 to 2.6% in 2023—the lowest figure since at least 2014. Lower than the five-year annualized expectation, which had never happened in the time frame.
Of 510 responses, 17.3% expected prices to drop by more than 5%, 27.7% thought there would be a decrease of between zero and 5%, 37.1% said 0 to 10% gain, and 17.9% thought more than a 10% increase. As the overall results would suggest, there was a heavy downward shift from 2022 to 2022.
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