What Every Seller Should Know About Home Prices

Seller Home Prices

What’s Really Happening with Home Prices?

It’s possible you’ve seen news stories mentioning a drop in home values or home price depreciation, but it’s important to remember those headlines are designed to make a big impression in just a few words. But what headlines aren’t always great at is painting the full picture.

While home prices are down slightly month-over-month in some markets, it’s also true that home values are up nationally on a year-over-year basis. The graph below uses the latest data from S&P Case-Shiller to help tell the story of what’s actually happening in the housing market today:

As the graph shows, it’s true home price growth has moderated in recent months (shown in green) as buyer demand has pulled back in response to higher mortgage rates. This is what the headlines are drawing attention to today.

But what’s important to notice is the bigger, longer-term picture. While home price growth is moderating month-over-month, the percent of appreciation year-over-year is still well above the home price change we saw during more normal years in the market.

The bars for January 2019 through mid-2020 show home price appreciation around 3-4% a year was more typical (see bars for January 2019 through mid-2020). But even the latest data for this year shows prices have still climbed by roughly 10% over last year.

What Does This Mean for Your Home’s Equity?

While you may not be able to capitalize on the 20% appreciation we saw in early 2022, in most markets your home’s value, on average, is up 10% over last year – and a 10% gain is still dramatic compared to a more normal level of appreciation (3-4%).

The big takeaway? Don’t let the headlines get in the way of your plans to sell. Over the past two years alone, you’ve likely gained a substantial amount of equity in your home as home prices climbed. Even though home price moderation will vary by market moving forward, you can still use the boost your equity got to help power your move.

As Mark Fleming, Chief Economist at First Americansays: “Potential home sellers gained significant amounts of equity over the pandemic, so even as affordability-constrained buyer demand spurs price declines in some markets, potential sellers are unlikely to lose all that they have gained.”

Bottom Line

If you have questions about home prices or how much equity you have in your current home, let’s connect so you have an expert’s advice.

Reside Real Estate represents the region's finest properties with exceptional skill using the most innovative technologies currently available. Reside Real Estate offers ultimate privacy and security, speed, and efficiency. Their years of full-time experience have given them a clear understanding of the mindset of home buyers and sellers and a thorough understanding of the regional marketplace.

A local Fort Worth, Texas real estate agent is ready to help you find your dream home!

Discussion

#1 By Mark Davis at 2/7/2023 7:00 AM

Don't ever hesitate to call out your local professionals to do your job for you!

#2 By Anthony Perez at 3/22/2023 8:12 AM

This is one of the important reasons why we need to seek better advice from realtors esp if we are doing major renovations before putting our house on the market. Just like what we did before we contacted contractors to do the repainting and installation of a concrete driveway. Grateful and lucky that we have experts near our area.

#3 By Brian Miller at 4/12/2023 7:41 AM

The reason why I always contact real estate agents before I will start doing some home improvements. The last time I did was repainting the exterior of the house. Before getting the services we did talk to real estate agents to make sure that we did the right choice and what might be the changes since we are planning to sell the house on the market in the future. They can really help! They can help you save money and time too.

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