If you’re thinking about selling your house, and you have heard the news about today’s home prices and home value, here’s what you really need to know.
What’s Really Happening with Home Prices?
You may have seen the nightly news report a drop in home values or home price depreciation. But did you know that home values are up nationally on a year-over-year basis, and home prices are down slightly month-over-month in some markets? The graph below shows the latest housing market data from S&P Case-Shiller.
The above graph shows that home price growth has moderated in recent months (green bars) as buyer demand has pulled back because of higher mortgage rates. What’s important to notice is the 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.
January 2019 through mid-2020 shows home price appreciation of around 3-4% a year was more typical. 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?
You may not be able to capitalize on the 20% appreciation from early 2022. In most markets, home values are up an average of 10% over last year.
Don’t let the news headlines distract you from your plans to sell. Over the past two years, you’ve gained a substantial amount of equity in your home as home prices have climbed. Moving forward, home price moderation will vary by market, but you can still use the additional equity you have in your home to help power your move.
Mark Fleming, Chief Economist at First American, said, “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.”
Downers Grove Real Estate Agents
If you have questions about home prices or how much equity you have in your current home, contact a real estate agent at Wenzel Select Properties today. We offer expert advice about selling and buying a home. Call (630) 430-4790. Our real estate office is in the heart of downtown Downers Grove. We are just minutes away from Interstates 88, 355, 55, 290, and 294. Wenzel Select Properties real estate brokers are available to meet with you 7 days a week – Monday through Sunday.