Home Prices Are Rebounding
If you've been watching the news today, you might be feeling a little uneasy about the state of housing prices and wondering if the worst is yet to come. This is due to the overly unfavorable portrayal in today's headlines. If we look at housing prices year over year, they have decreased somewhat, but that is because we are comparing them to a "unicorn" year when prices peaked far higher than average.
We need to look at monthly data in order to prevent an unfair comparison to that earlier high. And that presents a completely different and significantly more uplifting tale. The national data tells us the following, even though market-specific local home price trends continue to vary.
The graphs below use recent monthly reports from three sources to show the worst home price declines are already behind us, and prices are appreciating nationally.
We need to look at monthly data in order to prevent an unfair comparison to that earlier high. And that presents a completely different and significantly more uplifting tale. The national data tells us the following, even though market-specific local home price trends continue to vary.
The graphs below use recent monthly reports from three sources to show the worst home price declines are already behind us, and prices are appreciating nationally.
This monthly perspective reveals that the housing market's previous year may be separated into two segments. During the first half of 2022, housing prices increased quickly. But beginning in July, prices started to decline (red in the graphs above). The tendency began to stabilize by late August or early September. However, these graphs also demonstrate that prices are increasing once more when looking at the most recent statistics for early 2023.
It's promising for the housing market because all three data indicate that prices have been rising for three or more consecutive months. The month-over-month data shows that home prices are once again on the rise, signaling a countrywide trend.
It's promising for the housing market because all three data indicate that prices have been rising for three or more consecutive months. The month-over-month data shows that home prices are once again on the rise, signaling a countrywide trend.
According to experts, one of the reasons prices haven't fallen as precipitously as some had predicted is because there aren't enough homes for the number of individuals who want to buy them. There are more buyers than there are houses available for purchase, even with today's financing rates.
Here’s How This Affects You
Buyers: If you have put off purchasing because you were concerned that the value of your home might decline, you should feel some relief knowing that home prices have increased. Additionally, it allows you the chance to acquire something that often appreciates in value over time.
Sellers: It can be a smart idea to work with a real estate agent to list your home if you've been putting off selling your home because you were worried about how shifting home prices would affect its value. The most recent data indicates that things appear to be going in your favor, therefore there is no need for you to wait any longer.
Bottom Line
If you put off moving because you were worried about home prices plummeting, the most recent data shows that the worst has already passed and that prices are rising across the board. Let's talk so you can learn more about the real estate market in our area.