Cervone Deegan + Associates knows that if you are a homeowner currently or if you’re looking to buy a home soon, the recent headlines about home prices may have you coming up with more questions than getting answers. Everyone is talking about home values cooling and dipping and that is causing concern about a repeat of what happened to prices during the last crash back in 2008.
One of the biggest questions everyone is wondering today is exactly how much will home prices decline. However, what not everyone may know is expert forecasters aren’t predicting a free fall in prices. If you look at recent data, there’s a case to be made that we may be already beyond the most significant portion of month-over-month price depreciation. The numbers weren’t actually significant dips on the national level. Instead of asking how far will they drop, the question really is if home values have already hit the bottom.
Recent data reporting shows trends in home pricing from Case-Shiller, the Federal Housing Finance Agency (FHFA), Black Knight, and CoreLogic. The reporting collectively shows that on a national scale property values have changed month-over-month since January 2022. November and December numbers have yet to come out.
The most interesting reporting is that if we look at the last four months that were published from July to October of 2022 we can see that all reports show the biggest dip in home depreciation happened during the month of August. This certainly does not guarantee that home prices have reached their low, but it does suggest that homes are not on a free fall which could mean that the worst may in fact be behind us.
If you have questions about what’s happening with home prices in your local market, reach out to Cervone Deegan + Associates to further discuss. Each market is different and some may have seen prices that were more inflated than others. We would be happy to review how the local market is currently trending with you.