Wondering About the State of Home Prices?
The recent changes in home prices are on many people's minds as the housing market prepares for spring. It can be difficult to sort through misleading headlines and confusing data, so here's what you should know about today's home prices.
Local price trends still vary by market. But looking at national data, Nataliya Polkovnichenko, Ph.D., Supervisory Economist at the Federal Housing Finance Agency (FHFA), explains:
“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.”
Month-over-month home price changes can be seen in the chart below. The data also shows that price depreciation peaked around August. Since then, any depreciation has been even milder. In other words, today’s home prices aren’t in a freefall.
What Does This Mean for You?
If you currently own a home, you may be concerned about even minor price drops. However, keep in mind how much home values have risen in recent years. In comparison to that growth, any national declines are likely to be minor. Selma Hepp the 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 remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on home prices in your area if you’re planning to make a move this spring.
Let's talk about what's going on with home prices in our market and how they might affect your goals.
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