Are Home Prices Depreciating or Just Stabilizing?
So, what is actually happening with home prices today? As an experienced agent in today’s changing market, this is the question I am most asked. It seems to be on everyone’s mind, especially for anyone who is thinking about selling or buying a home.
Nationally, there is still ongoing home appreciation, even though at the same time sellers are reducing the price of their homes. This leaves buyers and sellers confused about what really is going on in the market. Let’s break down the three terms used in the industry by experts to better clarify what is 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 pace.
In today’s National housing market, experts are saying that we are in a market of deceleration, where home prices continue to appreciate, but at a slower pace than previous years. This means we are not seeing the record-breaking appreciation we have seen in 2020 and 2021.
What Can We Expect for the Rest of 2022?
According to Corelogic, in 2021 home prices appreciated by an average of 15% nationwide…32% here in Northwest Arkansas, which saw the largest increase in value of anywhere in the country in 2021. This year, experts are seeing a decelerated pace of 10-11% appreciation. Of course in certain select markets, you may see declines more drastic. But, when we look at what is going on in the country on a national level, the projection from the experts is home prices will not depreciate, but continue to appreciate at a moderate level.
Reach Out For Updates
Of course, as always, it is best to connect with your local realtor to get specific market updates on home prices in your area. Please feel free to reach out to me and my team so we can let you know what is going on locally.