Home Prices on the Rise: Debunking the Negativity

In today's news cycle, it's easy to feel inundated by distressing headlines about real estate trends. Many of these headlines spell doom and gloom for home prices, leaving us wondering if the worst is yet to come. However, these sensationalized stories often tell only one side of the narrative. The truth, based on recent data, is far more encouraging. Let's take a more nuanced look at home prices, one that reflects the positive signs we're seeing nationwide.

Appreciation, Not Freefall

A common misconception recently is that home prices are spiraling downwards. However, the latest data tells a different story. On a year-over-year basis, home prices have continued to appreciate - they're just moving at a slightly slower pace than during the pandemic's peak.

To fully grasp the market's current dynamics, it's crucial to examine monthly data. These offer a more comprehensive view of the market trends, painting a picture of a market that has already weathered the worst of the price declines and is now showing signs of resurgence.

A Tale of Two Halves

2022 unfolded as a story of two halves for the housing market. In the first half of the year, home prices were on an upward trajectory, peaking in June. Come July, we started to see a decline. By August or September, the trend began to stabilize.

As we dive into the data for early 2023, we're noticing a rebound in momentum. Home prices are starting to tick back up, and this resurgence is likely to gain more steam as we move further into the busy spring season.

Signs of Stabilization

While a couple of months of data doesn't necessarily define a trend; It suggests a national shift is underway, with home prices beginning to rise once more.

Andy Walden, Vice President of Enterprise Research at Black Knight, articulates this turnaround in home price trends, saying, "Just five months ago, prices were declining on a seasonally adjusted month-over-month basis in 92% of all major U.S. markets. Fast forward to March, and the situation has done a literal 180, with prices now rising in 92% of markets from February."

Selma Hepp, Chief Economist at CoreLogic, emphasizes the role of limited supply in driving this positive shift: "The monthly rebound in home prices underscores the lack of inventory in this housing cycle."

What Does This Mean for You?

Sellers: If you've been postponing selling your property due to concerns about dipping home prices, it may be the perfect time to re-enter the market and collaborate with Kevin Farfan a local market expert Realtor to list your property. The latest data indicates a favorable turn for sellers.

Buyers: If you've been on the fence about purchasing a home because of potential value depreciation, rest assured that the market is on an upward trend. Buying now could allow you to capitalize on current prices before they climb higher. Plus, homeownership remains a valuable long-term investment.

The Bottom Line

If fear of falling home prices has delayed your plans to move, be reassured that the worst appears to be behind us. Home prices are rising nationally, and it's an opportune time to make your move. As always, it's essential to connect with a local market expert like Kevin Farfan who can provide insights specific to your area.

In a market as dynamic as real estate, it's crucial to look beyond the headlines and delve into the data. Remember, the narrative is often more nuanced than it initially appears.