Reveal the Vital Insights on Home Prices in Today's Marketplace

Current news about the housing market might have you uncertain if it's time to list your home. To assist with making this decision simpler, here is what you should know regarding how these stories influence the worth of your property.

Home prices in the United States tend to go through cycles, with a rise and fall of buyers and sellers over time. While some areas may be experiencing an increase due to high demand for homes or other factors such as population growth, others could face decreasing home prices because fewer people are buying or there is an upsurge in foreclosure rates. It is key to understand these patterns of housing market performance so you can make informed decisions about when it's best for you to buy or sell your property.

Remember, the national housing market is made up of several localized markets. Each location has its own specific conditions and trends which may vary from place to place. To be sure you're making an informed decision, consult with a local real estate agent or appraiser to get accurate information about home prices in your area.

Keep in mind, even if trends show that the market is gearing up for growth, it doesn’t necessarily mean your home will benefit from an increase in value. The condition and features of your property are just as important to consider when pricing accordingly.

Properly preparing for selling your house begins with researching the current home prices in your area. Doing so will ensure you make a knowledgeable decision as to when is the right time to list it on the market, and how much should you be asking for it. Make sure to get professional advice before taking any further steps towards placing your house up for sale - that way, you can take advantage of getting its max value!

Get an Inside Look at the Real Estate Market - How are Home Prices Evolving?

Have you been hearing reports about home value depreciation? These alarming headlines may make great news, but they don't necessarily show the entire picture. It's essential to remember this when assessing such stories.

Despite experiencing a brief lull in housing prices, if you take a look at the data on an annual basis, it's clear that the real estate market is seeing considerable growth. The following graph from S&P Case-Shiller supports this notion by displaying how home values have been increasing since last year:

The rate of growth for home prices, as depicted in the graph (in green), has indeed gone down recently. However, this drop follows an increase in mortgage rates which has caused prospective buyers to back out from making a purchase. This pattern is what news outlets are currently reporting on.

It is important to keep the bigger picture in mind; although month-to-month home price increases have slowed, year over year appreciation rates remain significantly higher than during more typical market conditions.

From January 2019 to mid-2020, real estate market prices grew a steady 3-4% annually (see the bars for that period). Yet even during these challenging times of 2020, data indicates that home values are near 10% more than last year - a clear indicator of thriving housing markets.

How Will This Impact the Value of Your Home?

Even if your house's growth doesn't reach the 20% early 2022 peak that was seen, a 10% rise from last year is still quite significant. By comparison to ordinary levels of appreciation (3-4%), this remarkable increase can have an extraordinary effect on both your finances and wellbeing.

Here's the takeaway: Don't let present day headlines hinder you from achieving your selling goals. Over the past two years, it is probable that your home has gained noteworthy equity due to rising prices. Even though market conditions may not be as favorable in 2020 and coming years, capitalize on this newfound wealth and use it for inspiration when moving!

As Mark Fleming, Chief Economist at First American, says:

“Potential home sellers gained significant amounts of equity over the pandemic, so even as affordability-constrained buyer demand spurs price declines in some markets, potential sellers are unlikely to lose all that they have gained.”

Bottom Line

Despite minor drops in house prices across certain regions, sellers can still reap the rewards of equity gained over the past two years by selling now. Don't let recent reports on declining values deter you from pursuing your plans to sell – current market conditions are remarkably favorable! Make this the opportunity that launches you into greater success.

If you are curious about the current market value of your home or what it looks like from an equity perspective, let us join forces and gain access to a local professional's expertise.