When trying to decide whether to sell your home, it’s worth keeping an eye on the recent home price headlines. And if you’re wondering what these stories mean for the value of your home, here’s what you really need to know.
What’s Really Happening to Home Prices?
You may have seen news stories mentioning falling real estate values or falling home prices, but remember that these headlines are designed to make a big impression with just a few words. But what headlines aren’t always good at is painting the big picture. While home prices are down slightly month-over-month in some markets, it’s also true that home prices across the country are up year-over-year. The chart below uses the latest data from S&P Case-Shiller to tell the story of what’s really happening in the real estate market today.
As the chart shows, true home price growth has moderated in recent months (shown in green) as buyer demand declined in response to rising mortgage rates. This is what today’s headlines are all about.
But it’s the bigger, longer-term picture that matters. Month-to-month house price gains have slowed, but the year-over-year rate of increase in value still far exceeds the change in house prices seen in the market in a more normal year.
The January 2019 to mid-2020 bar shows that house price growth of around 3-4% per year is more common (see January 2019 to mid-2020 bar). . But even this year’s latest data shows that prices are still up about 10% year-on-year.
What does this mean for your home equity?
While you may not be able to take advantage of the 20% appreciation in early 2022, house prices are up 10% year-on-year on average across most markets. Normal value of gratitude (3-4%).
big snack? Don’t let the headline get in the way of your sales plan. In the last two years alone, you’ve probably acquired a sizeable amount of stock as home prices have risen. House price easing will vary by market, but asset growth can be used to fuel the move.
First American chief economist Mark Fleming said:
“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.”
Bottom Line
If you have any questions about home prices or your current home equity, please contact us. Find out why Kaya Homes is the leader in Long Island real estate and are your go-to realtor in the Lynbrook, Oceanside, Malverne, Hewlett, Valley Stream, East Rockaway, Woodmere, Cedarhurst, Baldwin , North Woodmere, Woodsburgh, Hewlett Neck Hewlett Harbor, Bellmore,Wantagh,Merrick and Freeport area.
Thu, 15 Dec 2022 23:07:19 +0000
