Have Home Values Hit Bottom?

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Whether you’re already a homeowner or looking to become one, the recent headlines about home prices may have left you with more questions than answers. News stories are discussing the potential for home prices to fall, raising concerns of a repeat of the 2008 housing market crash. With the current economic climate, it is important to stay informed and understand the potential implications of the housing market on your finances.

Many people are wondering how much home prices will decline in light of recent headlines. However, experts are not predicting a dramatic decrease in prices. In fact, the latest data suggests that the largest portion of month-over-month price depreciation may already be in the past, and even those numbers were not significant on a national level. Rather than asking how far prices will drop, the question now becomes: have home values reached their lowest point?

Let’s examine the most recent data from several reliable industry sources (see chart below): This data provides us with a comprehensive overview of the current state of the industry and can help us make informed decisions.

The chart above provides an insightful look at the most recent reports from Case-Shiller, the Federal Housing Finance Agency (FHFA), Black Knight, and CoreLogic. It reveals how, on a national level, home values have fluctuated month-over-month since January 2022. November and December figures are yet to be released.

Let’s hone in on what the red numbers tell us. The red numbers represent the change in home values over the last four months that have been reported. When we isolate the last four months, the data reveals that home price depreciation reached its highest point in August.

While this doesn’t guarantee that home price depreciation has reached its lowest point, it does confirm that prices are no longer in a rapid decline, and it may be an indication that the worst is already behind us. As the numbers for November and December are released, we will be able to further validate this national trend and gain a better understanding of the current housing market.

Home prices have been declining month-over-month for the past four months, but there is a strong indication that the worst may be over. If you have any questions about the current state of the local housing market, please don’t hesitate to reach out.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Diane Casey Luong Realtor does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Diane Casey Luong will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

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About Diane Casey Luong

As an award-winning, full-time Realtor®, Diane is a proven leader among Worcester MA real estate agents, fully committed to you and your property goals.

As a requested speaker, Diane educates audiences on topics such as the purchasing foreclosure properties, nuances of the real estate market from neighborhood to neighborhood, and understanding the ever-changing trends in the real estate industry.

A graduate of the Massachusetts Academy of Real Estate, Diane has brought her expertise in real estate to Worcester, MA, and its surrounding towns.

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Diane Casey Luong
Realtor
REMAX Advantage 1
25 Union Street
4th Floor
Worcester, MA 01608