Is The Sky Falling?

As the housing market gears up for spring, many people are concerned about the recent changes in home prices. With so much confusing data and misleading headlines, it can be hard to navigate the market. However, Nataliya Polkovnichenko, Ph.D., Supervisory Economist at the Federal Housing Finance Agency (FHFA), sheds some light on the national data, saying:

“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.”

Although local price trends still vary by market, data shows that month-over-month home price changes have been mild, with price depreciation peaking around August. Since then, any depreciation has been even milder. In other words, today’s home prices are not in a freefall.

How Does This Impact Homeowners?

If you currently own a house, you may be concerned about even the smallest decline in prices. However, Selma Hepp, Chief Economist at CoreLogic, points out that any declines we’re seeing nationally are likely to be minimal compared to the growth of home values over the last few years. Hepp explains:

“. . . 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.

Give me the short of it!

It’s important to remember that every local market is different. If you’re planning to make a move this spring, it’s essential to lean on an expert for the latest information on the home prices in your area.

In conclusion, to understand what’s going on with home prices in your market and how they could impact your goals, it’s best to connect with a trusted expert today.