If you’re in the housing market, you may be wondering what’s going on with home prices. Reports of falling prices have caused some to worry about a repeat of the housing market crash in 2008. However, it’s important to put these reports into context and understand what they mean for the current market.
Home prices have been declining, based on recent headlines. But it’s important to note that experts aren’t predicting a sharp decrease in prices. In fact, the latest data shows that the biggest portion of monthly price depreciation may already be over. And even those numbers weren’t significant decreases on a national level. So instead of wondering how far prices will drop, the question becomes: have home values hit bottom?
Let’s take a look at the latest data from several reputable industry sources (see chart below):
As the chart above demonstrates, home values have fluctuated over the past few months. The red numbers show the month-over-month change in values since January 2022. It appears that, on a national scale, home value depreciation peaked in August and has begun to stabilize since then.
The data from October shows that home price depreciation may be slowing down. This is good news, as it confirms that prices aren’t in free fall. The numbers for November and December will be released soon, and they will help to validate this trend.
Here’s What We Say…
It’s been four months since home prices have declined on a month-over-month basis, but it’s possible that the worst is now over. If you’re curious about current trends in home prices, reach out to me, and let’s talk. I’m always happy to chat about the market.
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