What Is Really Going on with Home Prices Right Now?

 

What's happening with housing prices is one of the most frequent queries at the moment. While news stories frequently mention price increases, some house sellers are simultaneously lowering their asking prices. That can be perplexing and makes it more challenging to understand.


The difficulty in understanding what experts are saying when their words seem similar is one aspect of the problem. To better explain what is happening right now, let's dissect the distinctions between those concepts.


  • When home prices rise, this is called appreciation.

  • When home prices drop, this is called depreciation.

  • When home price increases slow down or become more gradual, this is known as a deceleration.


Experts concur that the current state of the nation is one of deceleration. As a result, although not at the record-breaking rate they have over the past year, home prices are rising. According to CoreLogic data, home prices nationwide increased by an average of 15% in 2021. And that increase was over 20% earlier this year. Home price growth this year is expected to slow to an average rate of 10 to 11%, according to experts.


This basically means that even though home prices are moderating, they are still significantly above average, and we would need to see much more deceleration to even get back to more typical rates of home price growth. That is still not a decrease in the value of homes.


The main conclusion is that home prices are not nationwide declining or appreciating; rather, they are just decelerating or moderating. Nationally, home prices are anticipated to rise, despite the possibility of declines in some distinctive and overheated markets. Furthermore, none of the experts predict that home prices will decline or net depreciate across the nation. They all convey a constant sense of appreciation.


Get in touch with Vanna Siackhasone at (907) 720-4663 if you have any inquiries about the current state of home prices.


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