Home Prices Still Growing - Just at a More Normal Pace
If you find yourself confused by conflicting information on the current state of home prices, you're not alone. Misconceptions about falling prices persist, fueled by unreliable sources and media coverage that sometimes misrepresents the actual data. Let's cut through the confusion and delve into the real story.
Normal Home Price Seasonality
Spring marks the peak homebuying season, characterized by heightened market activity. This momentum continues into the summer but gradually subsides as the cooler months approach. Home prices mirror this seasonality, appreciating the most when demand is high.
As observed in the data, home prices experience growth at the beginning of the year, although at a slower pace compared to the spring and summer months. This is attributed to reduced market activity in January and February. As the market enters its peak homebuying season in the spring, prices surge in response. As fall and winter approach, prices continue to grow but at a more moderate pace as market activity eases.
This Year's Seasonality
Now, let's compare this year's data to the long-term trend mentioned earlier:
The dark bars represent the longstanding trend, while the green bars depict this year's data. Notice that the green bars are aligning with the normal market trends, indicating a return to more sustainable price growth compared to recent years.
Dispelling the Myth
In essence, national home prices are not falling; rather, price growth is normalizing. It's crucial to recognize that the media may misinterpret this slowing of home price growth as an outright decline. Therefore, it's important not to take headlines at face value. The data provided here offers the context needed to truly understand the situation. If confusion arises from headlines, consult a trusted real estate professional for accurate information.
Home price appreciatin is reverting to normal seasonality, signifiying a positive shift. Understanding that home prices are returning to a more moderate pace of growth is key to navigating the current real estate market.