Central Alabama Real Estate BlogRecently posted or modified blog posts by tag - Pricinghttps://www.jacobsandershomes.com/blog/Copyright JacobSandersHomes.com2023-02-23T07:12:04-07:00tag:jacobsandershomes.com,2012-09-20:5856Wondering What’s Going on with Home Prices?<a>Wondering What’s Going on with Home Prices?</a>
The recent changes in home prices are top of mind for many as the <a href="https://www.simplifyingthemarket.com/2023/02/02/experts-forecast-a-turnaround-in-the-housing-market-in-2023/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">housing market</a> begins gearing up for spring. 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), <a target="_blank" href="https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/FHFA-HPI-Monthly-1312023.pdf">explains</a>:
“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.
<a target="_blank" href="https://api.simplifyingthemarket.com/wp-content/uploads/2023/02/us-house-prices-largely-unchanged-MEM.png"><img class="aligncenter wp-image-48821" src="https://api.simplifyingthemarket.com/wp-content/uploads/2023/02/us-house-prices-largely-unchanged-MEM.png" alt="Wondering What’s Going on with Home Prices? | Simplifying The Market" width="650" height="488" /></a>
What Does This Mean for You?
If you currently own your house, you may be concerned about even the <a href="https://www.simplifyingthemarket.com/2023/02/09/why-todays-housing-market-isnt-headed-for-a-crash/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">smallest decline</a> in prices. But keep in mind how much home values grew over the last few years. Compared to that growth, any declines we’re seeing nationally are likely to be minimal. Selma Hepp, Chief Economist at CoreLogic, <a target="_blank" href="https://www.cnbc.com/2023/02/10/home-prices-mortgage-rates-fall.html">shares</a>:
“. . . 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’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the home prices in your area if you’re planning to make a move this spring.
Bottom Line
To understand what’s going on with home prices in our market and how they could impact your goals, let’s connect today.
2023-02-23T02:13:49-07:002023-02-23T07:12:04-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5462What’s Going on with Home Prices? Ask a Professional.If you’re thinking about <a href="https://www.simplifyingthemarket.com/2022/11/23/what-buyers-need-to-know-about-the-inventory-of-homes-available-for-sale/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">buying</a> or <a href="https://www.simplifyingthemarket.com/2022/11/22/what-homeowners-want-to-know-about-selling-in-todays-market/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">selling</a> a home this year, you may have questions about what’s happening with home prices today as the market cools. In the simplest sense, nationally, experts don’t expect prices to come crashing down, but the level of <a href="https://www.simplifyingthemarket.com/2022/11/09/whats-ahead-for-mortgage-rates-and-home-prices/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">home price moderation</a> will depend on factors like supply and demand in each local market.
That means, moving forward, home price appreciation will continue to vary by location, with more significant changes happening in overheated areas. Here’s a quick snapshot of what the experts are saying:
Danielle Hale, Chief Economist at realtor.com, <a href="https://www.realtor.com/research/2023-national-housing-forecast/" target="_blank">says</a>:
“The major question on the minds of homeowners and aspiring buyers alike is what will happen to home prices. . . Soaring prices were propelled by all-time low mortgage rates which are a thing of the past. As a result, home price growth is expected to continue slowing, dipping below its pre-pandemic average to 5.4% for 2023, as a whole.”
Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/pandemic-boom-markets-cooling-the-fastest" target="_blank">says</a>:
“House price appreciation has slowed in all 50 markets we track, but the deceleration is generally more dramatic in areas that experienced the strongest peak appreciation rates.”
Taylor Marr, Deputy Chief Economist at Redfin, <a href="https://twitter.com/tayloramarr/status/1578082283281596418" target="_blank">says</a>:
“For those bearish folks eagerly awaiting the home price crash, you’ll have to keep waiting. As much as demand is pulling back supply is as well reducing downward pressure on prices in the short run.”
John Paulson, Founder of Paulson & Co., <a href="https://twitter.com/NickTimiraos/status/1574458786214948865" target="_blank">says</a>:
“It’s true – housing may be a little frothy. So housing prices may come down or they may plateau . . .”
What Does This Mean for You?
The best way to get the answers you need is to lean on a local <a href="https://www.simplifyingthemarket.com/2022/08/29/a-trusted-real-estate-advisor-provides-expert-advice/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">real estate advisor</a>. They’ll be able to explain the latest trends in your specific market so you can make a confident and informed decision on your next step toward buying or selling a home.
Bottom Line
If you have questions about what’s happening with home prices today, let’s connect so you have the latest on our local market.2022-12-08T05:36:08-07:002022-12-08T05:45:23-07:00Jacob Sanders