If you're keeping up with the news, you might be feeling a bit uncertain about where home prices are heading and whether things are about to take a turn for the worst. Well, let me tell you, the headlines are really blowing things out of proportion. Sure, when we compare prices to last year, there has been a slight drop, but let's not forget that last year was like a magical unicorn in terms of how high prices went. So, in reality, things are still pretty much within the normal range.

So here's the thing, if we want to steer clear of making an unfair comparison to that previous peak, we should really be focusing on the monthly data. And let me tell you, that paints a much more positive picture. Now, keep in mind that the trends in home prices can still differ from one market to another, but let me give you the lowdown on what the national data is saying.

Check out these graphs I've got here. They use monthly reports from three different sources. And you know what? They're showing that the worst home price declines, those bad ones, are already in the past. Yup, we're moving on up! Prices are appreciating all across the nation.

When we take a look at this monthly view, it's pretty clear that the past year in the housing market can be split into two distinct periods. In the first half of 2022, home prices were on the rise, and boy were they rising fast! But then, come July, things took a turn and prices began to drop (you can see those drops in red on the graphs above). It looks like around August or September, things started to level out a bit. However, if we zoom in on the most recent data for early 2023, these graphs also reveal that prices are back on the upswing.

You know what's really exciting? All three reports are showing that home prices have been going up continuously for three months or more! Can you believe it? This is a super encouraging sign for the housing market. The month-over-month data clearly indicates that there's a national shift happening – home prices are on the rise once again. It's definitely something to be optimistic about!

““If I were trying to make a case that the decline in home prices that began in June 2022 had definitively ended in January 2023, April’s data would bolster my argument.”
”

— Craig J. Lazzara, Managing Director at S&P Dow Jones Indices

You know, the experts out there have been saying that the prices of homes didn't really crash like everyone thought they would. And you wanna know why? Well, it's because there just aren't enough houses for all the people who wanna buy them. Yeah, even with the mortgage rates being what they are today, there are way more people looking to buy homes than there are homes up for sale. It's kind of a crazy situation, if you ask me.

““History has shown that higher rates may take the steam out of rising prices, but it doesn’t cause them to collapse entirely. This is especially true in today’s housing market, where the demand for homes continues to outpace supply, keeping the pressure on house prices.”
”

— Mark Fleming, Chief Economist at First American

““. . . housing prices continue to show stronger growth than what was previously expected . . . Housing’s performance is a testimony to the strength of demographic-related demand . . .”
”

— Doug Duncan, Senior VP and Chief Economist at Fannie Mae

Here’s How This Affects You

• Buyers: If you've been hesitating to buy a home because you were concerned about the possibility of your home's value decreasing, I've got some good news for you. The housing market has experienced a solid rebound, so you can take a breath of relief on that front. Not only that, but buying a home now presents you with the chance to own something that typically appreciates in value over time. Pretty cool, right?

• Sellers: If you've been holding off on selling your house because you were worried about how fluctuations in home prices would impact its value, it could be a smart move to partner up with a real estate agent and get your house listed. The good news is that you don't have to wait any longer, as the latest data shows things are starting to work in your favor.

Bottom Line

Hey there! If you've been thinking about holding off on your moving plans due to worries about home prices taking a nosedive, guess what? The latest data shows that the worst is behind us and home prices are on the rise nationwide. So, how about we connect and I fill you in on what's happening with home prices in our neck of the woods? Let's make sure you're up to speed!