Recent data from Fannie Mae reveals that nearly 25% of individuals believe that home prices will decrease. If you are concerned about this, here is essential information for you.

A significant portion of that fear likely stems from media reports or online sources. It's crucial to recognize that negative news garners attention, so you might not be getting the complete and accurate picture but rather a sensationalized version. Jay Thompson, a Real Estate Industry Consultant, elucidates this point.

““Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.”
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— Jay Thompson, a Real Estate Industry Consultant,

Let's review the data for clarity.

Home Prices Rose the Majority of the Past Year

Case-Shiller publishes a monthly report on percentage changes in home prices. Reviewing data from January 2023 to the most recent figures reveals the trend.

When you observe this graph, your focus will determine what stands out to you. If you are drawn to the green color, you will notice that home prices increased for most of the last year.

It is common in media coverage to emphasize minor declines due to the appeal of negative news, leading to a narrow focus on the red instead of considering the broader perspective.

The data indicates a predominance of green in the graph with minor fluctuations in the red bars, resulting in a minimal overall increase in home prices for the year.

In the housing market, home price growth typically slows in winter due to reduced moving activity during the holidays and early year, resulting in less pressure on prices. Consequently, the price gains are smaller during this period, as indicated by the smaller green bars at year-end.

The overarching story is that prices went up last year, not down.

To summarize, the data source for the graph above, Case Shiller, explains it as follows:

““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.”
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— Case Shiller

According to expert organizations monitoring home prices, minor declines are not a cause for concern. Case-Shiller highlights the almost stagnant dips and emphasizes that home prices increased throughout the year.

Bottom Line

The data indicates an overall increase in home prices over the past year. If you seek further insights on local home price trends, feel free to reach out for a discussion.