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Is the Housing Market at Rock Bottom or Just Hitting a Speed Bump?

A graph indicating a rock bottom

Are you feeling a little uneasy about the recent headlines about home prices falling? Don’t worry, you’re not alone. But before you start panicking about a repeat of the 2008 housing crash, let’s take a closer look at the data.

Contrary to what some headlines may suggest, expert forecasters aren’t predicting a free fall in home prices. In fact, if you look at the latest numbers, it seems that the biggest portion of month-over-month price depreciation may already be behind us. So, instead of wondering how far prices will drop, the question becomes: have home values hit bottom?

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According to data from several reputable industry sources (check out the chart below), home values on a national scale have changed month-over-month since January 2022. And if we focus on the red numbers, which show the change in home values over the last four months, we can see that in each case, home price depreciation peaked in August.

While this doesn’t guarantee that home price depreciation has hit bottom, it does confirm that prices aren’t in a free fall. In fact, it may be an early signal that the worst is already behind us. As the numbers for November and December are released, we’ll have more data to validate this trend.

Bottom Line

So, there you have it folks. While home prices have depreciated for the past four months on record, there’s a strong case to be made that the worst may be behind us. If you’re still wondering what’s happening with home prices in your local market, let’s connect and chat about it. After all, there’s no need to feel uneasy when you have all the facts.

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