Monday Market Update: 3 Home Price Headlines

If you think high mortgage rates are keeping home prices down… it may be time to think again. Home prices have hit the headlines in the last several weeks with some statistics and perspectives that just may surprise you. Check it out! 

“The national home price composite has reached a NEW all-time high, erasing all previous price declines.”

Bankrate & Mortgage News Daily   The major media headlines have all been publishing the latest National Home Price Index from Case-Shiller which reveals 6 months of consistent home price growth across the US has now erased previous declines. In addition, 10 out of 20 cities sampled reached all-time high levels of home sales prices. While this is noteworthy, it is important to note that this data represents national averages. Reginal variations exist and your own micro market may or may not reflect this trend. But the key is that on average, there is not a decline in home prices and many areas are actually hitting home price highs! 

“The total value of the US housing market is up 49% compared to the period before the start of the pandemic in February 2020.” 

Yahoo! Finance & Zillow | A Zillow analysis reports that the total value of the US housing market has increased nearly 50% - due to not only rising home prices but also… new construction. While new builds have not increased inventory as much as hopeful buyers would like, the progress has dramatically impacted the overall value of real estate in the nation. Not surprising to those of us who live here, California tops the list of states whose value lies in real estate. In fact – our state represents 20% of the real estate value of the US. 

“Once interest rates go down, housing prices are likely to ‘go through the roof.’ “ 

Yahoo Finance & Fox Business    Real estate entrepreneur and “Shark Tank” star Barbara Corcoran was recently interviewed and shared a perspective that many in the industry agree with. If you think home prices are high now - just wait until interest rates drop. While many are tempted to wait out the rates, by the time that dip occurs the cost of the home you want may be much higher. “The minute those interest rates come down, all [is] going to break loose and the prices are going to go through the roof… It’s going to be a signal for everybody to come back out and buy like crazy, and the house prices [will likely] go up by 20%.” (Corcoran) 

Do any of these headlines surprise you? Create more questions than answers? Make you glad you purchased when you did? 

As October continues, expect more home price predictions and 2024 projections to emerge. There is no crystal ball but there is a lot of analysis and much historical evidence to make some educated guesses. 

All my best,

Bobbi

Bobbi & Team 

Bobbi Decker
DRE#00607999

Broker Associate, Bobbi Decker & Associates
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www.bobbidecker.com
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