cont. from part 1
HOME PRICES ARE REBOUNDING
If you’re following the news today, you may feel a bit unsure about what’s happening with home prices and fear the worst is yet to come. Local home price trends still vary by each market, but here’s what the national data tells us.
Today’s headlines are making things look worse than they are. If we take a year-over-year view, home prices did drop some, but that’s because we’re comparing to a very unusual year in the housing market. 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.
Looking at the recent 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 slightly. By around August or September, the trend started to stabilize. But, looking at the most recent data for early 2023, prices are going up again. The month-over-month data indicates a national shift is happening – home prices are rising again. Experts believe one of the reasons prices didn’t crash like some expected is because there aren’t enough available homes for the number of people who want to buy them. Even with today’s mortgage rates, more people are looking to buy than there are homes available for sale. Our own Somerset Hills Area reflects this.
How does more demand than supply keep upward pressure on prices?
History has shown that higher rates may take the steam out of rising prices, but it doesn’t cause them to collapse entirely. This is especially true in today’s housing market, where the demand for homes continues to outpace supply, keeping the pressure on house prices.
Here’s how this affects you if you’ve been waiting to sell your house because you were concerned about how changing home prices would affect its value. It might be a good idea to call me for advice to discuss your house in particular. You don’t have to wait any longer because the latest data suggests things are turning in your favor. The correct information is powerful!
According to the most recent data: If you delayed your moving plans because you were concerned about home prices dropping, the latest data reveals the worst is already over, and prices are appreciating nationally. Let’s connect so you know what's happening with home prices in our area.
For the love of success,
For the love of driving your home forward,
Adding value for my clients and loving where we live!
Judy@JudithSutton.com
COLDWELL BANKER...GUIDING PEOPLE HOME SINCE 1906
908 803-0472
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