Today’s headlines paint an unnecessarily negative picture regarding the future of home prices. Very recent data from trusted market sources tell a much more upbeat story.
In a year-over-year view, home prices appreciated more slowly than they did at the peak of the pandemic. However, monthly data indicates that the worst home price declines have already occurred, and that prices are on their way back up nationally.
By August-September 2022, the home price volatility present in the first half of the year began to stabilize. In early 2023, there has been a rebound in momentum with an uptick in prices. Monthly changes in home prices are gaining steam as the busier spring season begins.
Even though a few short months’ activity doesn’t exactly equal a trend, accurate reports are showing that prices have stabilized, and this is an encouraging sign that a national shift is taking place today. In essence, home prices are starting to tick back up.
Andy Walden, Vice President of Enterprise Research at Black Knight, states:
“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.”
Chief economists are indicating that the limited supply of homes available for sale is also contributing to this positive turn.
For Sellers, the latest data shows a turn in their favor, as home prices are on the rise. Home values are only affected in positive ways, especially when selling at a time when others are not.
For Buyers, this is the time to make a move before home prices inevitably climb; a home purchased now will typically grow in value over time.