Have Home Prices Reached Rock Bottom?

If you are a current homeowner or if you may be looking to buy a home soon, the recent news about home prices may have you asking more questions than receiving answers. Everyone is talking about home values cooling off and decreasing and that’s causing concern about a repeat of what happened to home prices during the last crash back in 2008.

One of the chief questions people try to speculate today is just how much will home prices decline? However, what not everyone may know is that expert forecasters aren’t predicting a full on free fall in prices. Additionally, if you refer to recent data, there’s an argument to be made that we may be beyond the point of the most significant month-over-month home price depreciation. The numbers weren’t actually too significant of a decline on a national level. Instead of asking how far they will drop, the question really is if home values have already hit their lowest low.

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

The most interesting trend is that if we look at the last four months that were published from the months of July to October of 2022 we can see that all reports show the biggest decline in home depreciation happened during the month of August. This certainly does not confirm that home prices have reached their low, but it does show 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 going on with home prices in your local market, reach out to me to further discuss. Each market trends differently and some may have seen prices that were more inflated than others. I am happy to discuss how the local market is  trending with you.