Wondering What’s Going on with Home Prices?
Many people are thinking about the recent changes in home prices as the housing market starts to prepare for spring. Here is what you need to know about current home prices because it can be challenging to sort through false headlines and perplexing statistics.
Market-specific local price patterns continue to differ. However, Nataliya Polkovnichenko, Ph.D., Supervisory Economist of the Federal Housing Finance Agency (FHFA), explains when looking at national data:
“U.S. house prices were largely unchanged in the last four months and remained near the peak levels reached over the summer of 2022. While higher mortgage rates have suppressed demand, low inventories of homes for sale have helped maintain relatively flat house prices.”
The chart below depicts month-over-month changes in home prices. According to the data, price depreciation peaked in August. Any depreciation since then has been even milder. In other words, home prices aren't in free fall right now.
What Does This Mean for You?
If you currently own your house, you may be concerned about even the smallest decline in prices. But keep in mind how much home values grew over the last few years. Compared to that growth, any declines we’re seeing nationally are likely to be minimal. Selma Hepp, Chief Economist at CoreLogic, shares:
“. . . while prices continued to fall from November, the rate of decline was lower than that seen in the summer and still adds up to only a 3% cumulative drop in prices since last spring’s peak.”
It's also important to keep in mind that each local market is unique. That's why, if you're planning to move this spring, you should rely on an expert for the most up-to-date information on home prices in your area.
Contact a local real estate professional today to learn more about home prices in your area and how they may impact your goals.
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