Home Values Sitting Pretty
Home values continue to rise! Despite the media largely being negative on housing for years, home values continue to buck the narrative and continue to climb, building immense wealth for buyers and adding to the financial securty of home owners around the country.
While home value growth is beneficial for home owners, the rates of growth we've seen the past 2 years are so high they're unhealthy as they have priced some people out of their local markets. In a healthy environments, home prices rise at a sustainable level to benefit home owners while keeping the market flush with buyer and seller equilibrium. This month, home price appreciation has showed a slow down for the first time in a very long time. This is great news, because appreciation is still moving on up and helping those who own homes, but shows at least a hint of normalizing. While the "Dip" in appreciation (remember, slowing appreciation means home values are still climbing, just at a slower pace!) is pretty small, it's a good sign that things may be heading toward a healthier market.
Due to supply and demand imbalance, home estimates are expected to continue to climb throughout 2022, but a more moderate pace would allow more buyers to enter the market and still allow sellers to capitalize on their gains.
You can see in the graphic on this post that appreciation rates are split by region of the US with the Pacific and Mountain regions leading the way with more moderate gains across the rest of the US. It's important to note it also shows the month over month gains AND the year over year gains.
It's still a wonderful time to buy a home with prices rising, slightly more inventory coming to market, and appreciation expected to continue in the 10%+ range for another year through 2022 (that means buying a $500K home, the estimates call for an increase of value of ~$50K!).
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