As the housing market prepares for spring, many people are concerned about the recent fluctuations in home prices. However, it can be challenging to interpret the various headlines and data, making it difficult to make sense of the situation. To shed some light on the matter, Nataliya Polkovnichenko, Ph.D., who is a Supervisory Economist at the Federal Housing Finance Agency (FHFA), has shared her insights on current home prices. While local price trends may vary depending on the market, analyzing national data reveals valuable information.“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 displays the changes in home prices on a month-over-month basis. It is apparent from the data that the maximum price depreciation occurred in August. However, since then, any further depreciation has been less significant. This suggests that current home prices are not plummeting uncontrollably.
What Does This Mean for You?
If you are a homeowner, you may be worried about the slightest drop in home prices. However, it is essential to consider the substantial increase in home values over the past few years. When compared to that growth, any current declines in home prices nationwide are expected to be negligible. Selma Hepp, who is the Chief Economist at CoreLogic, supports this view.
“. . . 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 is crucial to recognize that each local housing market is unique. Therefore, if you plan on relocating this spring, it is crucial to seek advice from a local expert who can provide you with the most up-to-date information on the housing prices in your area. This can help you make informed decisions about buying or selling a home.
To understand what’s going on with home prices in our market and how they could impact your goals, let’s connect today.
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Fri, 17 Feb 2023 02:30:32 +0000
