With the recent news about home prices, you might be unsure if it's time to put your house on the market. To help make this decision a bit easier, here is what you ought to know regarding how these headlines impact your property’s value.
First, it is important to understand that the United States housing market is cyclical. Prices tend to rise and fall over time as buyers and sellers move in and out of the market. In some areas, prices are rising due to a surge in demand for homes or other factors such as an influx of people moving into the area. Other places may experience decreasing home prices due to fewer buyers or other factors such as an increase in foreclosure rates.
Second, you should also realize that the current national housing market is still made up of local real estate markets. Each area has its own unique market conditions and trends, which can be very different from others. This makes it important for you to consult with a local real estate agent or appraiser to determine the average home prices in your area.
Finally, keep in mind that even if national trends indicate rising prices, this does not necessarily mean that your home will appreciate in value. The condition of your house and the features it offers can also affect its price, so you should take these factors into consideration as well.
Overall, understanding the current home prices in your area can help you make an informed decision when it comes to selling your house. Make sure to do your research and consult with the right professionals before listing your house on the market. With this information at hand, you can take steps towards getting the best price for your home.
Have you heard reports concerning the fall of house values or price depreciation? While these quick headlines may generate attention, they don't always present a complete and accurate view. It's essential to keep this in mind when considering such stories.
Home prices may be seeing a slight dip when looking month-to-month in some areas, however, there is also an undeniable and positive upswing across the nation on an annual basis. The graph below illustrates this trend using the most recent data from S&P Case-Shiller:
While it is true that the rate of growth for home prices has moderated, as seen in the graph (in green), this decrease follows a spike in mortgage rates which has caused potential buyers to withdraw. This is what news outlets are currently reporting on.
However, it is important to take note of the broader, deeper view. Although home price increases are slowing down month-to-month, the rate of appreciation year over year is still much higher than what we saw in more typical times in the market.
From January 2019 to mid-2020, home prices appreciated by approximately 3-4% annually (see the bars for that period). However, this year's data shows that prices are still close to 10% higher than last year – a clear sign of thriving real estate markets.
Although you may not experience the 20% growth that occurred in early 2022, even with a 10% increase from last year, your home's value is significantly elevated compared to usual appreciation levels (3-4%). This dramatic gain can have an impact on your finances and overall prosperity.
Here's the most important thing to note: Don't let recent news keep you from executing your selling plans. Over the past two years, it's likely that your home has gained significant equity due to rising prices. Even though market conditions may differ in 2020 and beyond, take advantage of this increased wealth and allow it serve as a motivator for relocating!
As Mark Fleming, Chief Economist atFirst American,says:
“Potential home sellers gained significant amounts of equity over the pandemic, so even as affordability-constrained buyer demand spurs price declines in some markets,potential sellers are unlikely to lose all that they have gained.”
What this means for sellers is that, while there may be a slight decrease in home prices month-to-month in certain areas, your house is still likely to have gained equity over the past two years. This makes selling now a more advantageous option than waiting. So don't let recent news headlines about falling values keep you from executing your selling plans – market conditions are still incredibly favorable!
If you're curious about what home values are like or where your equity stands in the current market, let's team up and gain access to a professional's knowledge.
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