Recent data from Fannie Mae shows that about one in four people still believe home prices will drop. If you're worried about this, it's important to understand the whole story.
A lot of that worry likely comes from what you see in the news or online. But here's the thing: bad news gets attention. So, you might not be getting the full story – just the sensationalized version. As Jay Thompson, a Real Estate Industry Consultant, explains, headlines often exaggerate, leading to misunderstandings.
Looking at the data can clear things up. Case-Shiller gives monthly reports on home price changes. If we look at their data from January 2023 until now, we see this:
This graph shows that while there are a few dips (shown in red), overall, home prices went up (shown in green). Even though prices sometimes dipped slightly, they mostly increased throughout the year.
It's normal for home prices to slow down in winter when fewer people buy houses. So, even the smaller gains towards the end of the year are expected. In short, the data tells us that home prices went up overall, not down.
Case Shiller agrees, saying, "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."
So, according to the experts, those small dips aren't anything to worry about. Even Case-Shiller says they were barely noticeable and that home prices actually went up over the year.
The data shows that home prices increased over the past year. If you want personalized advice on local market trends, it's best to talk to a trusted real estate professional.
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