Wondering Whats Going on with Home Prices?

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The recent changes in home prices are top of mind for many as thehousing marketbegins gearing up for spring. It can be hard to navigate misleading headlines and confusing data, so heres what you should know about todays home prices.

Local price trends still vary by market. But looking at national data, Nataliya Polkovnichenko, Ph.D., Supervisory Economist at theFederal Housing Finance Agency(FHFA),explains:

U.S. house prices were largely unchanged in the last four months and remained near the peak levels reached over the summer of 2022. While higher mortgage rates have suppressed demand, low inventories of homes for sale have helped maintain relatively flat house prices.

Month-over-month home price changes can be seen in the chart below. The data also shows that price depreciation peaked around August. Since then, any depreciation has been even milder. In other words,todays home prices arent in a freefall.

What Does This Mean for You?

If you currently own your house, you may be concerned about even thesmallest declinein prices. But keep in mind how much home values grew over the last few years. Compared to that growth, any declines were seeing nationally are likely to be minimal. Selma Hepp, Chief Economist atCoreLogic,shares:

. . . while prices continued to fall from November,the rate of decline was lower than that seen in the summer and still adds up to only a 3% cumulative drop in prices since last springs peak.

Its also important to remember that every local market is different. Thats why its essential to lean on an expert for the latest information on the home prices in your area if youre planning to make a move this spring.