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The Return of Normal Seasonality for Home Price Appreciation
If you are thinking of making a move, one of the biggest questions you have right now is probably: what is happening with home prices? Despite what you may be hearing in the news, nationally, home prices are not falling. It is just that price growth is beginning to normalize. Here is the context you need to really understand that trend. In the housing market, there are predictable ebbs and flows that happen each year. It is called seasonality. Spring is the peak homebuying season when the market is most active. That activity is typically still strong in the summer but begins to wane as the cooler months approach. Home prices follow along with seasonality because prices appreciate most when something is in high demand. That is why there is a reliable long-term home price trend. The graph below uses data from Case-Shiller to show typical monthly home price movement from 1973 through 2022 (not adjusted, so you can see the seasonality):  As the data shows, at the beginning of the year, home prices grow, but not as much as they do in the spring and summer markets. That is because the market is less active in January and February since fewer people move in the cooler months. As the market transitions into the peak homebuying season in the spring, activity ramps up, and home prices go up a lot more in response. Then, as fall and winter approach, activity eases again. Price growth slows, but still typically appreciates. After several unusual unicorn years, todays higher mortgage rates helped usher in the first signs of the return of seasonality. As Selma Hepp, Chief Economist at CoreLogic, explains: High mortgage rates have slowed additional price surges, with monthly increases returning to regular seasonal averages. In other words, home prices are still growing but are in line with historic seasonal expectations. Why This Is So Important to Understand In the coming months, you are going to see the media talk more about home prices. In their coverage, you will likely see industry terms like these: Appreciation: when prices increase. Deceleration of appreciation: when prices continue to appreciate, but at a slower or more moderate pace. Depreciation: when prices decrease. Do not let the terminology confuse you or let any misleading headlines cause any unnecessary fear. The rapid pace of home price growth the market saw in recent years was unsustainable. It had to slow down at some point and that is what we are starting to see deceleration of appreciation, not depreciation. Remember, it is normal to see home price growth slow down as the year goes on. And that definitely does not mean home prices are falling. They are just rising at a more moderate pace. Bottom Line While the headlines are generating fear and confusion on what is happening with home prices, the truth is simple. Home price appreciation is returning to normal seasonality. If you have questions about what is happening with prices in our local area, let us connect. 
Over $125 Million in Career Sales 
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It is a common misconception that a real estate agent primarily learns of someone looking to buy or sell a home when someone simply calls an agency looking for an agent to help them. Although this can happen, it is very rare. In fact, over 80% of the referrals I receive come from past clients and past coworkers just like you. The other 15-20% of referrals comes from our national network of relocation companies and other Coldwell Banker agencies across the country. The greatest compliment I can receive is when someone like you refers me to a friend, coworker or family member of theirs. If you, or someone you know, are looking to either buy or sell a home then I would certainly appreciate the opportunity to earn your business. Do you know of someone looking to buy or sell a home?  Click the vCard below to download my contact information to load on your phone and to share with anyone you know that would benefit from my help in buying or selling a home. 
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 12401 Old Meridian Street Carmel, In 46032 Email brad@btgough.com Mobile (317) 590-3571 Office (317) 844-1131 Website www.btgough.com |