What Every Seller Should Know About Home Prices

display of a living room for home buying

If you’re trying to decide whether or not to sell your house, recent headlines about home prices may be top of mind. And if those stories have you wondering what that means for your home’s value, here’s what you really need to know.

What’s Really Happening with Home Prices?

It’s possible you’ve seen news stories mentioning a drop in home values or home price depreciation, but it’s important to remember those headlines are designed to make a big impression in just a few words. But what headlines aren’t always great at is painting the full picture.

While home prices are down slightly month-over-month in some markets, it’s also true that home values are up nationally on a year-over-year basis. The graph below uses the latest data from S&P Case-Shiller to help tell the story of what’s actually happening in the housing market today:

What Every Seller Should Know About Home Prices | MyKCM

As the graph shows, it’s true home price growth has moderated in recent months (shown in green) as buyer demand has pulled back in response to higher mortgage rates. This is what the headlines are drawing attention to today.

But what’s important to notice is the bigger, longer-term picture. While home price growth is moderating month-over-month, the percent of appreciation year-over-year is still well above the home price change we saw during more normal years in the market.

The bars for January 2019 through mid-2020 show home price appreciation around 3-4% a year was more typical (see bars for January 2019 through mid-2020). But even the latest data for this year shows prices have still climbed by roughly 10% over last year.

What Does This Mean for Your Home’s Equity?

While you may not be able to capitalize on the 20% appreciation we saw in early 2022, in most markets your home’s value, on average, is up 10% over last year – and a 10% gain is still dramatic compared to a more normal level of appreciation (3-4%).

The big takeaway? Don’t let the headlines get in the way of your plans to sell. Over the past two years alone, you’ve likely gained a substantial amount of equity in your home as home prices climbed. Even though home price moderation will vary by market moving forward, you can still use the boost your equity got to help power your move.

As Mark Fleming, Chief Economist at First American, says:

Potential home sellers gained significant amounts of equity over the pandemic, so even as affordability-constrained buyer demand spurs price declines in some markets, potential sellers are unlikely to lose all that they have gained.”

If you have questions about home prices or how much equity you have in your current home, let’s connect so you have an expert’s advice.

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.

Three Main Factors That Influence Home Affordability

Listen to the audio version of this post!If you've been keeping tabs on the housing market in recent years, you've likely heard about the increasing affordability issues. However, experts predict that the key factors that influence housing affordability are likely to...

Have Home Values Hit Bottom?

Listen to the audio version of this post!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...

How Much Do I Need To Save for a Down Payment?

If you're preparing to purchase your first home, you're likely focused on saving up for all the associated costs. One of the most pressing expenses is likely your down payment, but don't let a common misconception about the amount you need to save make the process...

Applying For a Mortgage?

While it’s exciting to start thinking about moving in and decorating after you’ve applied for your mortgage, there are some key things to keep in mind before you close. Here’s a list of things you may not realize you need to avoid after applying for your home loan....

3 Ways You Can Use Your Home Equity

If you’re a homeowner, odds are your equity has grown significantly over the last few years as home prices skyrocketed and you made your monthly mortgage payments. Home equity builds over time and can help you achieve certain goals. According to the latest Equity...

Feature Story in The Rambler

Homes for Heroes Article Thank you to Rod Lee, Editor of The Rambler for this awesome feature story about my work with Homes for Heroes! Link to the story - https://rod-lee.com/wp-content/uploads/2022/11/THERambler-November-2022-1.pdf  The information contained,...

Perspective Matters When Selling Your House Today

Does the latest news about the housing market have you questioning your plans to sell your house? If so, perspective is key. Here are some of the ways a trusted real estate professional can explain the shift that’s happening today and why it’s still a sellers’ market...

169 Klondike Rd, Dudley, MA 01571

Take a look at this custom designed home located in Dudley, Massachusetts. Built with incredible attention to even the smallest of details, this master-crafted home combines everyday comfort with vacation home amenities. The home is right in the middle of nearly one...

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.

CONNECT

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