Have Home Prices Reached Their Lowest Point?

If you are a current homeowner or if you’re planning on purchasing a home soon, the recent chatter about home prices may have you asking more questions than getting answers. Everyone is discussing home values cooling 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 top questions people ponder today is just how much will home prices decline? However,  what not everybody may realize is experts aren’t forecasting a free fall in prices. If you review recent data, there’s an argument to be made that we may be past the most significant portion of month-over-month price depreciation. The numbers weren’t actually significant declines on the national level. Instead of asking how far will they drop, the question really is if property values have already hit their lowest low?

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

The most noteworthy trend is that if we look at the last four months that were published from July to October of 2022 we can see that all reports show the biggest dip in home depreciation occurred during the month of August. This certainly does not confirm that home prices have reached their low, but it does suggest that homes are not on a free fall which could mean that the worst of it may already be behind us.

If you have questions about what’s happening with home prices in your local market, reach out to me to further discuss. Each market behaves differently and some may have seen prices more inflated than others. I am happy to review how the local market is currently trending with you.