Even though some media coverage made a big deal about home prices pulling back, the slight correction that happened is already in the rearview mirror. Basically, this data shows you, nationally, home prices aren’t falling anymore – they’re actually going back up. “Home prices aren’t falling anymore . . . The surprisingly quick recovery suggests that the residential real-estate downturn is turning out to be shorter and shallower than many housing economists expected . . .” The declines that did happen, weren’t drastic but were short-lived. As Nicole Friedman, a reporter at the Wall Street Journal (WSJ), says:
What’s Next for Home Prices?
That means we’ll still see home prices appreciating, just at a slower pace than the last few years – and that’s a good thing. Some news sources will see home price growth slowing and put out stories that make you think prices are falling again. In their coverage, you’ll likely see industry terms like these: Appreciation: when prices increase. Deceleration of appreciation: when prices continue to appreciate, but at a slower or more moderate pace. Depreciation: when prices decrease. Don’t let the terminology confuse you or let any misleading headlines cause unnecessary fear. The rapid pace of home price growth the market saw in recent years was unsustainable. It had to slow down at some point and that’s what we’re starting to see – deceleration of appreciation, not depreciation. The consensus from experts is that home price growth will continue in the years ahead and is returning to normal levels for the market.
Remember, it’s normal to see home price growth slow down as the year goes on. And that definitely doesn’t mean home prices are falling. They’re just rising at a more moderate pace.
Bottom Line Even though the media may make things sound doom and gloom, the data shows home prices aren’t falling anymore. So, don’t let the headlines scare you or delay your plans. Let’s connect so you have a trusted resource to cut through the noise and tell you what’s really happening in our area.
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