What’s Actually Happening in Real Estate Today?
There are headlines about ongoing price appreciation, but at the same time, some sellers are reducing the price of their homes. That can feel confusing and makes it more difficult to get a clear picture.
Let’s break down the differences among those terms to help clarify what’s actually happening today.
Appreciation is when home prices increase.
Depreciation is when home prices decrease.
Deceleration is when home prices continue to appreciate, but at a slower or more moderate pace.
In 2021, data from CoreLogic tells us home prices appreciated by an average of 15% nationwide. And earlier this year, that appreciation was upward of 20%. This year, experts forecast home prices will appreciate at a decelerated pace of around 10 to 11%, on average.
Home prices have appreciated between 19-20% year-over-year from January to March. But over the last few months, the pace of that appreciation has decelerated to 18%. This means price growth is still climbing compared to last year but at a slower rate.
While moderating, home prices are still far above the norm, we’d have to see a lot more deceleration to even fall in line with more typical rates of home price growth.
Bottom Line
Home prices haven’t fallen or depreciated nationwide, they’re just decelerating. While some unique and overheated markets may see declines, nationally, home prices are forecast to appreciate. And when we look at the country as a whole, none of the experts project home prices will not depreciate or fall. They’re all projecting ongoing appreciation.
If you have questions about what’s happening with home prices in our local area, let’s connect.