 With everything that's been rapidly changing in the housing market, a common question on a buyer's mind is: what’s happening with home prices right now? There is always talk and updating headlines about ongoing price appreciation, but almost as often, you will see some sellers reducing the sale price of their homes. This can be confusing, and leave a potential buyer unable to understand a complete or clear picture. Understandably, it can be difficult to understand what these experts are saying when the vernacular they use sounds similar. We can determine differences among these common terms to help clarify what’s happening with home prices today:
Across the country, experts are saying that what we are seeing right now is deceleration. Home prices are still appreciating, but not at the same pace (which was record-breaking!) that we had seen over the past year. Last year, data from CoreLogic shows home prices appreciated nationwide by an average of 15%. And in 2022, that appreciation was more than 20%. This year, experts forecast home prices will continue to appreciate, but at an average decelerated pace of around 10 to 11%. The graph below shows the latest data from CoreLogic to help illustrate how home prices so far this year are decelerating, but not depreciating:  As shown by the green bars, home prices appreciated between 19-20% year-over-year from January to March. Over the last few months, however, the pace of appreciation has decelerated to 18%. This means the growth in the price of homes is still climbing when compared to last year, but now at a slower rate. Annual home price growth dropped by nearly two percentage points . . . – the greatest single-month slowdown on record since at least the early 1970s. . . While June’s slowdown was record-breaking, home price growth would need to decelerate at this pace for six more months to drive annual appreciation back to 5%, a rate more in line with long-run averages. - The Monthly Mortgage Monitor from Black Knight Current home prices are still far above the norm. We would have to see a lot more deceleration to come even close to more typical rates of growth in the price of homes. And yet, that's still not home price depreciation.
The biggest takeaway from everything here is that home prices haven’t fallen or depreciated nationwide, they’re only decelerating or moderating. While there may be some decline in unique and overheated markets, like what we have here in Idaho, home prices are forecast to continue to appreciate across the country. And when we take a look at the country as a whole, none of the experts project home prices will net depreciate or fall; they all project ongoing appreciation. Bottom Line If you have questions about what’s currently happening with home prices in Idaho, connect with a trusted real estate professional like Carolyn at Grafted Realty. |
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