Mortgage
Going into 2023, there was a lot of talk about a possible recession that would cause the housing market to crash. Some in the media were even forecasting home prices would drop by as much as 10-20%—and that might have made you feel a bit unsure about buying a home.
But here’s what actually happened: home prices went up more than usual. Brian D. Luke, Head of Commodities at S&P Dow Jones Indices, explains:
“Looking back at the year, 2023 appears to have exceeded average annual home price gains over the past 35 years.”
To put last year’s growth into context, the graph below uses data from Freddie Mac on how home prices have changed each year going back to 1980. The dotted line shows the long-term average for appreciation:
As an article from Forbes says:
“. . . the U.S. real estate market has a long and reliable history of increasing in value over time.”
In fact, since 1980, the only time home prices dropped was during the housing market crash (shown in red in the graph above). Fortunately, the market today isn’t like it was in 2008. For starters, there aren’t enough available homes to meet buyer demand right now. On top of that, homeowners have a tremendous amount of equity, so they’re on much stronger footing than they were back then. That means there won’t be a wave of foreclosures that causes prices to fall.
The fact that home values went up every single year except those four in red is why owning a home can be one of the smartest moves you can make. When you’re a homeowner, you own something that typically becomes more valuable over time. And as your home’s value appreciates, your net worth grows.
So, if you’re financially stable and prepared for the costs and expenses of homeownership, buying a home might make a lot of sense for you.
Home prices almost always go up over time. That makes buying a home a smart move, if you’re ready and able. Let’s connect to talk about your goals and what’s available in our area.
Stay up to date on the latest real estate trends.
Owning a home means you get to say goodbye to rising rents and hello to stability
3 beds | 1 bath | 1,183 sq ft
In April 2024 there were more homes for sale than there were over the last few years (2021-2023)
They're usually smaller than single-family homes, but that's exactly why they can be easier on your budget.
Whether you're a first-time seller or you’ve been through this before, a great listing agent is the key to your success.
Let's chat to see exactly what’s going on with prices in our neighborhood.
If you want to get your house ready for a summer listing, let’s connect.
3 beds | 2.5 baths | 1,770 sq ft
If you want to find out what builders are doing in our area, let’s connect and check it out together.
You’ve got questions and we can’t wait to answer them.