According to recent information shared by Fannie Mae, about a quarter of people believe that home prices are going to drop soon. If you are among those who think so, here are some things that you need to be aware of.
A lot of this thinking is more than likely stemming from what we are seeing in headlines or in the media, but we all must remember that negative news sells. It is important to turn to professionals in the industry to get the real story on what is happening in general and in your area.
Home Prices Increased For Most of Last Year
Case-Shiller shares data every month regarding home prices changes. If you consult their data from 2023 you would see that with the exception of January 2023 every month had month-over-month price increases ranging between 0.2% and 0.9%. It is also worth noting that in January most markets do see things experience a winter slow down so that would be relatively normal. Fewer people are looking to move during the holidays and at the start of the year so there is less activity seen then. Also, even the amount of decline seen in January at -0.2% was very small compared to the much larger ranges of increases seen all year.
To recap on all of that, Case Shiller explains: “Month-over-month numbers were relatively flat, . . . However, the annual growth was more significant for both indices, rising 7.4 percent and 6.6 percent, respectively.”
If one of the expert organizations tracking home price trends says the very slight dips are nothing to be concerned about then why worry? Even Case-Shiller is drawing your attention to how those were negligible and how home prices actually grew over the year.
So in the end the data shows that overall the home prices rose over the past year. If you have questions about what’s happening with home prices in your local area, be sure to reach out and speak with a trusted real estate professional such as myself.
