Making Sense of Rising Home Prices

Navigating the real estate market can feel like an emotional rollercoaster, but let’s face it—the trend for home prices is upward, not downward. Data across the board shows a consistent rise (just picture those climbing green bars in the following graph).

The story of 2022 began with soaring home prices, followed by a brief dip (those red valleys in the graph). But as we entered 2023, we’ve settled into a more stable climb, a sign of a healthy market recalibrating.

Orphe Divounguy from Zillow frames it well: “After a brief downturn, the housing market has made a robust comeback early in 2023…”

What’s driving prices up? Simply put, there are more people who want to buy homes than there are homes for sale. Even with higher mortgage rates, which usually dampen demand, we’re seeing the supply of homes shrink—a result of homeowners holding on to their low-rate mortgages.

Freddie Mac explains, “The decrease in supply is more influential than the drop in demand, leading to rising house prices…”

Here’s what this means for you:

Buyers: If you’ve been hesitating to buy, waiting for prices to fall, it’s time to reconsider. Homes typically appreciate over time, and the market’s upward trend is a reassuring sign.

Sellers: If you’ve been reluctant to sell, concerned about market fluctuations, now might be the time to take action. Current trends suggest prices are in your favor, making it a good time to list your home.

In summary, if the fear of falling home prices has been holding you back, it’s time to move forward. Prices are rising, and understanding your local market can help you make an informed decision. Let’s connect and explore your options in this upward-moving market.  Just complete the form below and I will contact you to discuss your options and strategy in buying or selling in Vero Beach Florida.