{"id":1009,"date":"2023-07-18T09:53:30","date_gmt":"2023-07-18T09:53:30","guid":{"rendered":"https:\/\/johnsonteamrealestate.com\/?p=1009"},"modified":"2023-07-20T10:03:28","modified_gmt":"2023-07-20T10:03:28","slug":"home-prices-are-rebounding","status":"publish","type":"post","link":"https:\/\/johnsonteamrealestate.com\/index.php\/2023\/07\/18\/home-prices-are-rebounding\/","title":{"rendered":"Home Prices Are Rebounding"},"content":{"rendered":"\n
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If you\u2019re following the news today, you may feel a bit unsure about what\u2019s happening with home prices<\/a> and fear whether or not the worst is yet to come. That\u2019s because today\u2019s headlines are painting an unnecessarily negative<\/a> picture. If we take a year-over-year view, home prices did drop<\/a> some, but that\u2019s because we\u2019re comparing to a \u2018unicorn\u2019 year<\/a> when prices peaked well beyond the norm.<\/p>\n\n\n\n

To avoid an unfair comparison to that previous peak, we need to look at monthly data. And that tells a very different and much more positive story. While local home price trends still vary by market, here\u2019s what the national data tells us.<\/p>\n\n\n\n

The <\/strong>graphs<\/strong><\/a> below use <\/strong>recent monthly<\/strong> <\/strong>reports<\/strong><\/a> from three <\/strong>sources<\/strong><\/a> to show the worst home price declines are already behind us, and prices are appreciating nationally.<\/strong><\/p>\n\n\n\n

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Looking at this monthly view, we can see the past year in the housing market can be divided into two parts. In the first half of 2022, home prices were going up, and fast. However, starting in July, prices began to go down (shown in red in the graphs above<\/em>). By around August or September, the trend started to stabilize. But, looking at the most recent data for early 2023, these graphs also show that prices are going up again.<\/p>\n\n\n\n

The fact that all three reports show prices have been going up for three or more straight months is an encouraging sign for the housing market. The month-over-month data indicates a national shift is happening \u2013 home prices are rising again<\/strong>.<\/p>\n\n\n\n

Craig J. Lazzara, Managing Director at S&P Dow Jones Indices<\/em>, says<\/a> this about home price trends:<\/p>\n\n\n\n

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\u201cIf I were trying to make a case that the decline in home prices that began in June 2022 had definitively ended in January 2023, April\u2019s data would bolster my argument.\u201d<\/em> <\/p>\n<\/blockquote>\n\n\n\n

Experts believe one of the reasons prices didn\u2019t crash like some expected is because there aren\u2019t enough available homes<\/a> for the number of people who want to buy them. Even with today\u2019s mortgage rates<\/a>, there are more people looking to buy than there are homes available for sale.<\/p>\n\n\n\n

Mark Fleming, Chief Economist at First American<\/em>, explains<\/a> how more demand than supply keeps upward pressure on prices:<\/p>\n\n\n\n

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\u201cHistory has shown that higher rates may take the steam out of rising prices, but it doesn\u2019t cause them to collapse entirely. This is especially true in today\u2019s housing market, where the <\/em>demand for homes continues to outpace supply, keeping the pressure on house prices<\/em><\/strong>.”<\/em><\/p>\n<\/blockquote>\n\n\n\n

Doug Duncan, Senior VP and Chief Economist at Fannie Mae<\/em>, states<\/a> home price growth is exceeding expectations thanks to that high demand:<\/p>\n\n\n\n

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\u201c. . .<\/em> housing prices continue to show stronger growth than what was previously expected<\/em><\/strong> . . . Housing\u2019s performance is a testimony to the strength of demographic-related demand . . .\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

Here\u2019s How This Affects You<\/strong><\/h4>\n\n\n\n