If you've been keeping up with the news, you might be feeling uncertain about the current state of home prices. The headlines can make things seem bleak and make you worry about what the future holds. However, it's important to remember that these headlines are creating an unnecessarily negative narrative.
Let's take a step back and look at the bigger picture. While it's true that home prices have dropped nationally compared to an extraordinary peak year, we must consider that this peak was an anomaly. To make a fair assessment, we need to focus on monthly data.
When we analyze the monthly data, we see a completely different and much more positive story. While local trends may still vary depending on the market, the national data provides encouraging insights.
By examining recent reports from three reliable sources, the graphs below reveal that the worst declines in home prices are now behind us. In fact, prices are appreciating on a national level.
The housing market over the past year can be divided into two clear parts. In the first half of 2022, home prices were on the rise, but starting in July, they began to decline. However, recent data for early 2023 shows that prices are once again increasing.
This is an encouraging sign for the housing market, as all three reports indicate that prices have been consistently rising for three or more months. The month-over-month data suggests a positive shift is occurring nationally, with home prices on the rise. According to Craig J. Lazzara, Managing Director at S&P Dow Jones Indices, the data from April supports the argument that the decline in home prices that started in June 2022 has definitively ended by January 2023.
Limited housing supply is keeping home prices from crashing, contrary to some expectations. The demand for homes outweighs the available options for buyers, contributing to the upward pressure on prices. Although higher mortgage rates can slow down price growth, they are not causing a complete collapse in the housing market. Experts emphasize the continued imbalance between supply and demand, which is driving the pressure on house prices. As a result, home price growth is surpassing predictions, and the strong demand driven by demographic factors is a significant factor in this impressive performance.
How Does This Affect You?
Buyers: The value of homes is on the rise after a temporary dip. Now is the perfect time to make a purchase and invest in something that will continue to appreciate over time.
Sellers: If you've been hesitant about selling due to fluctuating home prices, it's time to act. Partnering with Scott and the Smolen Team to list your house can result in a favorable outcome, as recent data suggests a positive market shift.
Don't let concerns about plummeting home prices hold you back from pursuing your moving plans any longer. The most recent data indicates that home prices are steadily appreciating across the country. To stay informed about the specific trends in your area, call or email Scott! By doing so, you'll gain valuable insights into the current state of home prices and make informed decisions for your next move.
