The era of the most severe declines in home prices has passed.

In the realm of current news, one may experience a certain degree of uncertainty regarding the trajectory of home prices, harboring apprehension as to whether the worst is yet to befall us. This sense of unease arises from the overly pessimistic narrative depicted in today's headlines. However, in direct contradiction to those sensationalized headlines, home prices are not plummeting into an abyss. On the contrary, the latest data presents a strikingly distinct and considerably more optimistic tale. While local trends in home prices still exhibit variability across different markets, let us delve into what the national data reveals.

Taking a comprehensive year-over-year perspective, it becomes evident that home prices maintained a positive trajectory; albeit, they appreciated at a more subdued pace compared to the peak observed during the pandemic. To obtain a more intricate understanding of the market's dynamics, we must scrutinize the monthly data.

The narrative revealed through this detailed monthly analysis unveils a narrative of two distinct halves in the housing market over the past year. During the first half of 2022, home prices experienced an upward climb, reaching their zenith in June. However, a reversal occurred in July, signifying a decline in home prices (depicted in red on the aforementioned graphs). Subsequently, around August or September, the trend began to stabilize. Examining the most recent data from early 2023, these graphs also demonstrate a recent resurgence in momentum, with prices ticking upward once again. As we transition into the bustling spring season, the monthly fluctuations in home prices are gaining momentum.

While it would be premature to deduce a trend based on a mere one to two months' worth of data, the fact that all three reports indicate price stabilization is an encouraging sign for the housing market. The month-over-month data firmly establishes an early but discernible consensus that a national shift is currently underway. In essence, home prices are initiating an upward trajectory.

Regarding home price trends, Andy Walden, Vice President of Enterprise Research at Black Knight, shares the following insight:

"Merely five months ago, prices were declining on a month-over-month basis, adjusted for seasonal variations, in 92% of the major U.S. markets. Fast forward to March, and the situation has undergone a complete reversal, with prices now rising in 92% of the markets compared to February."

Selma Hepp, Chief Economist at CoreLogic, explains that the limited inventory of homes available for sale contributes to this positive turn:

". . . prices in numerous large metropolitan areas have seemingly turned the corner, as the United States records a second consecutive month of monthly gains. . . . The monthly rebound in home prices highlights the scarcity of inventory within this housing cycle."

What Does This Mean for You?

For Sellers: If you have hesitated to sell your home due to concerns about the state of home prices and its potential impact on your property's value, now might be the opportune time to take the plunge and collaborate with a trusted agent to list your house. There is no need to postpone your plans any longer, as the latest data indicates a favorable shift in your favor.

For Buyers: If you have been holding off on purchasing a property out of fear that its value may decline, you can now find solace in the fact that the outlook is becoming increasingly optimistic. Seizing the opportunity to buy now allows you to act before home prices surge further, providing you with the chance to own an asset that typically appreciates over time.

Conclusion: If you have postponed your relocation plans due to concerns about falling home prices, the data reveals that the worst is already behind us, and prices are indeed on the rise nationwide.

If you're interested in learning more about the real estate market in Prescott, Arizona, contact Michael Eastwood, CEO of West USA Realty of Prescott at 928-636-1500 or visit our website at www.westusaofprescott.com. Michael will introduce you to one of his professional real estate agents that will be happy to assist you in your search for your dream home. Each of our offices is independently owned and operated. #Prescottrealestate #Prescotthomes #Prescottland #Prescottvalleyrealestate #Prescottvalleyhomes #Prescottvalleyland #Chinovalleyrealestate #Chinovalleyhomes #Chinovalleyland #Arizonarealestate #Arizonahomes #realestate #homes #prescott #chinovalley #Prescottvalley #buyers