Are home prices going up or going down? For some people, it can be confusing to determine which is the case because headlines are opposing and people are divided with their opinions. As always, the real estate market is changing, and it is good to know certain terms that are often used in the industry.
Appreciation - this means increase in pricing.
Depreciation - this means a reduction in pricing.
Deceleration - this means there is still an increase at a slower or moderate pace.
Moderation - this means that the pace or the speed of growth is not slow, but not as fast compared to the peak years.
According to experts, the real estate world is undergoing deceleration. As mentioned earlier, this means that home prices are still going up, however, just not as fast as last year.
Research shows that there was an increase of 15% to 20% in nationwide home prices in 2021.
This year, it is forecasted that home prices will appreciate around 10% to 11% on an average.
Take a look at this infographic from KCM and CoreLogic:
The green bars indicate that prices increased between 19 to 20% year-over-year from January to March. However, in the last few months, the speed of that appreciation has decelerated to 18%. This shows that there is still growth in home prices compared to last year, just at a moderate pace.
Overall, home prices haven't depreciated nationwide. They are just moderating. You may have seen some cases where markets have declined, especially the overheated ones. However, upon looking at nationwide statistics from experts, the projection is still an ongoing appreciation.
If you would like to know more about what's happening with home prices in your local area, reach out to us so we can help you.
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