What's Going On With Home Prices?
As we head into spring, the housing market is buzzing with speculation. It can be hard to navigate 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?
Even a slight drop in prices might worry homeowners, but it's important to remember the significant growth in home values that has occurred over the past 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.”
Since each local market has its own unique characteristics, it's crucial to seek advice from an expert who can provide you with the most up-to-date information on home prices in your area if you're considering a move this spring.
If you're looking to gain a better understanding of how home prices are affecting your real estate goals in the San Diego market, please don't hesitate to connect with us today!
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