Understanding Home Price Trends: What the Data Really Says

We've noticed some buzz lately about home prices—seems like there’s a mix of predictions out there. If you’ve caught any of those headlines suggesting prices might drop and felt a twinge of worry, let's sort through the noise together.

It’s true, nearly a quarter of people are bracing for a downturn, likely influenced by the dramatic headlines we often see. As Jay Thompson, a Real Estate Industry Consultant, pointed out, the news can really play up the doom and gloom because, let’s face it, that’s what gets clicks. He says:

“Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.”

But here’s the real scoop, straight from the latest data:

The majority of the past year has seen home prices climbing, according to the Case-Shiller index. If you take a look at their monthly reports, you’ll see a lot of green bars on their charts, signifying growth. Sure, there are a couple of red dips, but they’re minor and hardly a cause for alarm.

What’s really happening?

Well, it’s normal for the market to cool off a bit during the winter months—fewer folks are moving due to the holidays and the start of the new year, which means less competition driving prices up. Even then, the trend for the year shows an overall increase in home values.

Case Shiller sums it up pretty well:

“Month-over-month numbers were relatively flat...however, the annual growth was more significant for both indices, rising 7.4 percent and 6.6 percent, respectively.”

That’s a clear indicator that, overall, home prices have been on the rise, not the decline.

Bottom Line

The data doesn’t just suggest but shows that home prices have generally increased over the past year. If you’re curious about what this means for our local market or have any other questions, why not drop us a line? Let’s chat about how this could impact your home’s value or your plans for the future.