Have House Prices Reached their Lowest Point?
Home ownership is a huge decision, and the current headlines about home prices can leave you feeling uncertain. People are talking about values dropping again like they did during the 2008 financial crash — but that doesn’t have to mean bad news for everyone! If buying or selling a property is your goal this year, there may actually be an opportunity here if done with caution.
In light of recent news, many people are left wondering how much home prices will decrease. However, the most experienced forecasters estimate these numbers to not be as dramatic as some may presume; in fact, data indicates that national declines have likely already seen their peak. Instead of pondering how drastically values could fall further down the line, it is more effective and realistic to consider if they have reached their lowest point yet?
Let’s take a look at the latest data from several reputable industry sources (see chart below):
This chart offers an overview of the most recent reports from Case-Shiller, FHFA, Black Knight, and CoreLogic to show how home values have shifted on a national level since January 2022. The November and December figures are yet pending.
Let’s take a closer look at the red numbers. These indicate the alteration in home values over the past four months that have been reported. When we analyze only these last few months, data reveals that depreciation of house prices was highest during August.
This doesn’t mean for sure that this is as bad as it gets – but it does highlight how property costs do not appear to be declining rapidly anymore, and may finally start stabilizing soon. As November and December figures come out later on, more evidence will come in to corroborate this national trend even further!
Home prices have been decreasing month-over-month for the last four months, but there are strong indications that this could be over soon. If you would like to learn more about home prices in our area and what is happening with them now, I’m available to answer any questions you may have. Contact me today!