The worst of the home price declines are behind us
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 bleak picture. Contrary to the headlines, home values are not in freefall. The latest data tells an entirely different and more positive story. The national data shows that local home price trends vary by market. However, the data from the entire country is more positive. Monthly data will give us a better idea of some of the trends that are affecting the market. The graphs below, based on recent reports from three different sources, show that the worst of the home price declines is already behind us and that prices are on the way up across the country. In the first half 2022, prices of homes were rising and peaked in June. In July, the home price started to fall (red in the graphs). By roughly August or September the trend had stabilized. These graphs, which show the most recent data from the first part of 2023 also show that prices have recently started to tick back up. As we enter the busy spring season, monthly changes in home price are increasing. Although one or two months don’t make a pattern, the fact that the prices in all three reports have stabilized is a positive sign for the housing industry. The month-overmonth data shows a clear but early consensus that a nationwide shift is occurring today. Andy Walden, Vice-President of Enterprise Research at Black Knight says that home prices have started to rise. “Just five months earlier, prices were falling on a monthly basis, adjusted for season, in 92% of major U.S. cities. Fast forward to March and the situation has literally done a 180. Prices are now rising in 92% markets compared to February. . . Prices in many large metros seemed to have turned a corner. The U.S. recorded a second consecutive month of monthly gains. . . . The monthly rebound of home prices highlights the lack of inventory during this housing cycle. Here’s what this means for you sellers: If you have been holding off selling because you were worried about the price of homes and how that would impact the value your home, now may be the time to partner with an agent and list your home. The latest data shows that you don’t need to put off your needs any longer.
You can now buy with confidence if you have been waiting to make a purchase because you did not want to buy something that would depreciate in value. You can make a move now before home prices continue to rise and own an asset which will typically increase in value over time.
Bottom LineIf you delayed your plans to move due to concerns about home prices dropping, data shows that the worst has already passed and prices are rising across the country. Partner with a local realtor to get an expert to explain the current state of home prices in your region.
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