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What Every Seller Should Know About Home Prices

Friday, December 16, 2022   /   by Laura Larson

What Every Seller Should Know About Home Prices

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Recent home price news may be on your mind if you're attempting to decide whether or not to sell your house. Here's what you actually need to know if those stories have you wondering what that means for the value of your house.
 
Home-Price Trends
You may have read news articles indicating a price decline for homes, but it's crucial to keep in mind that those headlines are meant to convey rather complicated information in a short amount of time. Headlines, though, aren't always the best at giving a complete picture.
 
The larger, longer-term picture is what you need to pay attention to. It is clear that the growth in home prices month over month is slowing down, and although the percentage of house appreciation year over year is still higher than the downward trend in home prices, home sellers should expect prices to decline at a moderate pace.
 
Equity in Your Home
While you might not be able to benefit from the 20% appreciation we experienced in early 2022. This increase is still significant when compared to the more typical appreciation rate of 3-4%. The main lesson? Don't allow the headlines to interfere with your sales goals. You most certainly have accumulated a sizeable amount of equity in your home over the last two years alone due to rising home prices. Even if future market conditions will cause moderate home price reductions, you can still use your equity to support 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.”
 
Bottom Line
If you have questions about home prices or how much equity you have in your current home, reach out to Laura Larson for expert advice and unparalleled customer service.