Have Home Prices Reached Their Low

February 27, 2023
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If you are a homeowner or if you’re thinking of purchasing a home soon, the recent chatter about home prices may have you asking more questions than getting answers. Everyone is talking about home values simmering and decreasing and that’s causing concern about a recurrence of what happened to prices during the last crash back in 2008.
One of the biggest questions people ask today is just how much will home prices decline? However, what not everyone may know is expert forecasters aren’t predicting a free fall in prices. If you consult recent data, there’s an argument to be made that we may be past the most significant portion of month-over-month price depreciation. The numbers weren’t actually significant declines on the national level. Instead of asking how far will they drop, the question really is if home values have already hit bottom.
Recent data provides a snapshot of home pricing trends from Case-Shiller, the Federal Housing Finance Agency (FHFA), Black Knight, and CoreLogic. The data collectively indicates that on a national scale property values have changed month-over-month since January 2022. (November and December numbers have yet to come out.)
The most interesting trend is that if we look at the last four months that were published from July to October of 2022 we can see that all reports indicate the biggest dip in home depreciation happened during the month of August. This certainly does not confirm that home prices have officially reached their low, but it does show that homes are not on a free fall which could mean that the worst may be behind us.
If you have questions about what’s happening with home prices in your local area, reach out to me to further discuss. Each market acts differently and some may have seen prices more inflated than others. I am happy to review how the local market is currently trending with you.