Based on what you're hearing in the news about home prices, you may be worried they're falling. But here's the thing. The headlines aren't giving you the whole picture.
If you look at the national data for 2023, home prices showed positive growth for the year. While this varies by market, and there were some months with slight declines nationally, those were the exception, not the rule.
The overarching story is that prices went up last year, not down. Let's dive into the data to set the record straight.
2023 Was the Return to More Normal Home Price Growth
Last year marked a return to more normal home price appreciation. In the housing market, there are predictable ebbs and flows that take place each year, called seasonality. Spring is the peak homebuying season when the market is most active. That activity is usually still strong in the summer but begins to wane toward the end of the year.
Home prices follow along with this seasonality because prices grow the most when there's high demand. As the data shows, for nearly 50 years, home prices have matched typical market seasonality.
What You Need To Know
Headlines will focus on the small month-to-month dips instead of the bigger year-long picture. And that can be misleading because it's only focused on one part of the story.
Instead, remember last year, we saw the return of seasonality in the housing market. And that's a good thing after home prices skyrocketed unsustainably during the 'unicorn' years of the pandemic.
The expectation for this year is that prices will continue to appreciate as buyers re-enter the market due to mortgage rates trending down compared to last year.
Bottom Line
Don't let home price headlines confuse you. The data shows that, as a whole, home prices rose in 2023. Let's connect if you have questions about what you're hearing in the news.