Home Prices are Rebounding
You may be feeling a little unsure of what’s going on with home prices today and wondering if the worst is still to come. Today’s headlines paint an unnecessarily bad picture. If we look at the data year-over-year, home prices have dropped, but this is because we are comparing them to a unicorn’, or a year where prices peaked above average. This tells a much different and more positive story. The graphs below, which use monthly reports from three different sources, show that the worst of the home price declines is already behind us and prices are increasing nationally. This monthly view shows that the housing market has been divided into two distinct parts. In the first half 2022, home values were rising fast. Prices began to fall in July (shown in the graphs above in red). Around August or September the trend began to stabilize. The fact that the prices have been rising for three or more consecutive months in all three reports is a positive sign for the housing industry. The data shows that home prices are on the rise again. Craig J. Lazzara is the Managing Director of S&P Dow Jones Indices. He says that if I were to argue that the decline of home prices that started in June 2022 ended definitively in January 2023, the data for April would support my argument. Mark Fleming explains that even with today’s mortgage rate, there are still more people who want to buy than homes for sale. This is particularly true in the current housing market where demand for homes continues outpaces supply, maintaining pressure on house prices. Doug Duncan, Senior Vice President and Chief Economist of Fannie Mae states that home price growth has exceeded expectations due to the high demand. . . Housing prices continue to grow faster than expected. . . The housing market’s performance is a testament to the demographic-related demand. . “Here’s how this affects youBuyers: If your fear of losing the value of your house has kept you from buying, knowing that home prices have rebounded should give you some relief. You can also own something that will become more valuable over time.
Sellers: If your house has been on the market for a while, but you have been hesitant to list it because of concerns about how the changing home prices will affect its value, you might want to consider partnering with an agent to list it. The latest data suggests that things are going in your favor.
Bottom LineIf you put off moving because you were worried about home prices falling, the latest data shows that the worst has already passed and prices are increasing nationally. You can work with a local agent to find out what is happening with the home prices in your neighborhood.
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