What Sellers Should Know About Home Prices

You’ve probably seen news stories mentioning a drop in home values or home price depreciation, but it’s important to remember those headlines are designed to make a big, quick impression. While prices are down slightly month-over-month in some markets, home values are up nationally on a year-over-year basis. This graph uses data from S&P Case-Shiller to show what’s actually happening in the housing market.

As the data shows, home price growth has moderated in recent months (shown in green) as mortgage rates affected buyer demand. This is what the headlines are drawing attention to.

What’s important to note is the bigger, longer-term picture. While home price growth moderated month-over-month, the percent of appreciation year-over-year is still well above more normal years in the market. The bars for January 2019 through mid-2020 show home price appreciation around 3-4% a year. The latest data for 2022 shows prices have climbed by roughly 10% over the prior year.

What Does This Mean for Your Home’s Equity?

In most markets, your home’s value, on average, is up 10% over last year – and a 10% gain is dramatic compared to a more normal level of appreciation (3-4%).

The big takeaway? Don’t let the headlines get in the way of your plans to sell. Over the past two years alone, you’ve likely gained a substantial amount of equity in your home as home prices climbed. Home price moderation will vary by market. To get a better picture of your equity, ask me to complete a market valuation of your house. I'm here to help!