Pivotal Turn in the Housing Market

Advisors Mortgage Group > Market Updates > Pivotal Turn in the Housing Market

It seems that home prices have reached an inflection point and are on the rise once again. Black Knight reported that home prices rose 0.5% in March. This followed a 0.4% rise in February. When we look at Case Shiller, they are reporting that home prices rose 0.2% in February. The FHFA reported a rise of 0.2% in January and a rise of 0.4% in February. The CoreLogic Home Price Index reported two huge increases: up 0.8% in February and up 1.6% in March. Finally, Zillow’s Home Value Index rose 0.1% in February and 0.9% in March.

All this data is quite contrarian to what has been reported and talked about in the media. Unfortunately, there is a lot of talk about housing bubbles, crashes, and predictions of 20% drops in pricing. We’re just not seeing this here. Year over year, home prices were up in 2022 and they are heading upwards in 2023 as well. There was a short period of time from July of 2022 to the end of 2022 where home prices did decline slightly, but it barely registered statistically from FHFA. When you take a look at Case Shiller it was less than a 3% decline which is not much of a decline from such a huge increase previously.

As inflation continues to decline, it will push interest rates lower which will exacerbate home price appreciation going forward.

Sources :

https://bit.ly/42ugzYJ
https://bit.ly/3jWTYAu
https://bit.ly/3f4R6fl
https://bit.ly/3p5mOnb