Have Home Prices Reached Bottom?

If you currently own a home or if you’re looking to buy one soon, the recent headlines about home prices may have you asking more questions than receiving answers. Everyone is talking about home values cooling and decreasing and that’s causing concern about a repeat of what happened with home prices during the last crash back in 2008.

One of the big questions people ask today is just how much will home prices decline? However,  what not everyone may understand is that expert forecasters aren’t predicting a free fall in prices. If you consult recent data, there’s an argument to be made that we may have passed the most significant portion of month-over-month price depreciation. The numbers surprisingly weren’t actually significant declines on the national level. Instead of asking how far will they drop, the question now really is if home values have already hit their low.

Recent data reporting provides a snapshot of home pricing from Case-Shiller, the Federal Housing Finance Agency (FHFA), Black Knight, and CoreLogic. The reporting collectively shows that on a national scale property values have changed month-over-month since January 2022. (November and December numbers have yet to come out.)

The most noteworthy trend is that if we look at the last four months that were published from July to October of 2022 we can see that all reports show the largest dip in home depreciation happened during the month of August. This of course does not solidify that home prices have reached their low, but it does suggest that homes are not on a free fall which could mean that the worst may be behind us.

If you have questions about what’s happening with home prices in your local market, reach out to me to discuss. Every market will perform differently and some may have seen prices more inflated than others. I am happy to review how the local market is currently trending with you.