Home prices are a top-of-mind issue as the housing market gears up for another spring season. Misleading headlines and confusing data can create difficulty in understanding local and national price trends.
To cut through the fog, it’s important to know what changes have been observed by researchers such as Nataliya Polkovnichenko, Ph.D., Supervisory Economist of the Federal Housing Finance Agency (FHFA). According to her analysis of national data, the recent movements in home prices appear to be generally stable throughout various markets.
U.S. house prices were largely unchanged in the last four months and remianed 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.
The chart below shows evidence of relatively stable month-on-month price trends. It also highlights that a peak in home price depreciation occurred during August; however, any subsequent drops have been considerably milder. Therefore, current home prices are displaying resilience.
What Does This Mean for You?
Although homeowners may be worried about the fragile state of home values, Chief Economist at CoreLogic Selma Hepp reminds us of the substantial growth in housing prices over the past few years. Comparatively, declines in value that we’re seeing throughout the nation appear to be minor. Ms. Hepp states,
…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 vital to keep in mind that each local market is unique. That’s why it’s important to consult an expert for the most up-to-date information about home prices if you intend to move this spring. Consulting an expert will help ensure that your decision is informed and well-considered.
What We Say
To understand what’s going on with home prices in our market and how they could impact your goals, let’s connect today. Call us at today at 949-400-0987!
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