The Worst Seattle Home Price Declines Are Behind Us
May 16, 2023
Today‘s headlines may make you feel uncertain about home prices and worry if the worst is yet to come, but the latest data paints a much more positive picture. National home prices are still rising year–over–year, even if the appreciation rate has slowed since the peak of the pandemic. To get a more detailed understanding of the market, we need to look at monthly data.
The monthly graphs below use recent reports from three sources to show that the worst home price declines are already behind us, and prices are on their way back up nationally.
Home prices climbed steadily in the first half of 2022, peaking in June. However, starting in July, prices began to decline and stabilized by August or September. Recent data for early 2023 reveals a rebound in momentum, with prices increasing as the spring season approaches.
While one to two months doesn’t make a trend, the fact that all three reports show prices have stabilized is an encouraging sign for the housing market. The month-over-month data conveys a clear, but early, consensus that a national shift is taking place today. In essence, home prices are starting to tick back up.
Andy Walden, Vice President of Enterprise Research at Black Knight, says this about home price trends:
“Just five months ago, prices were declining on a seasonally adjusted month-over-month basis in 92% of all major U.S. markets. Fast forward to March, and the situation has done a literal 180, with prices now rising in 92% of markets from February.”
Selma Hepp, Chief Economist at CoreLogic, explains the limited supply of homes available for sale is contributing to this positive turn:
“ . . . prices in many large metros appeared to have turned the corner, with the U.S. recording a second month of consecutive monthly gains. . . . The monthly rebound in home prices underscores the lack of inventory in this housing cycle.”
Here’s What This Means for You
- Sellers: If you’ve been holding off on selling because you’re worried about what was happening with home prices and how it would impact the value of your home, it may be time to jump back in and partner with an agent to list your house. You don’t have to put your needs on hold any longer because the latest data shows a turn in your favor.
- Buyers: If you’ve been waiting to buy because you didn’t want to purchase something that would decrease in value, you now have the peace of mind things are looking up. Buying now lets you make your move before home prices climb more and gives you the chance to own an asset that typically grows in value over time.
Don‘t let worries about falling home prices stop you from moving – data shows that prices are actually rising nationally. Contact an expert on the local market to learn more about what‘s happening with home prices in your area.