If you’ve been watching the news lately, you might be concerned about a potential decline in home prices. What we found is that the headlines often paint a limited picture of the situation.
When we examined the national data for 2023, we found that home prices actually experienced positive growth throughout the year. While this may vary depending on the market, any slight declines observed nationally were more of an exception than the rule.
The overall trend indicates that home prices increased last year rather than decreased. In reality, 2023 marked a return to a more typical pattern of home price appreciation. It’s normal for the housing market to have predictable annual fluctuations, or you may hear the term “seasonality.” Typically, spring sees the peak of home buying activity, followed by a gradual decrease as we move towards the end of the year. Home prices tend to align with this pattern, rising when demand is high during peak seasons.
It’s important to note that headlines often focus on minor month-to-month fluctuations rather than the broader picture spanning the entire year. This narrow focus can be misleading as it overlooks the larger context. The good news is the return of seasonality in the housing market last year is a positive development! It shows the housing market is going back to a more normal pass after the juggernaut caused by the pandemic.
Furthermore, if you’re still concerned about the possibility of falling home prices, take heed of what most experts are saying: The expectation for this year is that prices will continue to appreciate. This projection is supported by factors such as decreasing mortgage rates, which are encouraging more buyers to enter the market. Couple that with the ongoing imbalance between housing supply and demand, the outcome will most likely be an upward pressure on prices.
Don’t let sensationalized headlines about home prices confuse you. The data from 2023 indicates that, overall, home prices saw an increase. If you have any questions or concerns about what you’re hearing in the news or how it may impact your local area, please reach out and connect with us.