Home prices have risen dramatically in recent years. That has been frustrating for buyers, with many wondering if they would ever be able to acquire a home.
However, there is some good news: the rapid rise in property prices is decreasing.
Home Prices Are Rising at a Healthy Pace
Nationally, home prices continue to rise, but at a much more moderate, regular pace. According to Case-Shiller, home prices increased by only 3.8% year on year in November.
This is a far cry from the double-digit surges that happened in 2021 and 2022 (see graph below).
This more regular home price growth may make purchasing a home appear more feasible for many people. You won't experience the same sticker shock or quick price increases that made it difficult to plan your buy a few years ago.
At the same hand, consistent growth means that the property you purchase today will likely increase in value over time.
Price Vary from Market to Market
While the national trend is for moderate price growth, it is crucial to remember that all real estate is local.
Some markets are experiencing faster growth, while others are slowing or even declining slightly. Selma Hepp, Chief Economist at CoreLogic, notes:
Meanwhile, some regions experienced minor month-over-month declines in November, according to Federal Housing Finance Agency (FHFA) data (see graph below).
What does this mean to you? It is critical to understand what is happening in your local market. A national average cannot reveal the complete story. Working with a local real estate agent might be especially beneficial in this situation.
They have the resources and knowledge to provide you with a comprehensive picture of what is going on in your area and how to plan for it throughout your relocation.
Bottom Line
Home prices are increasing at a more reasonable rate, and partnering with a local real estate agent can help you negotiate the ups and downs of your particular market.
Would you want to see what starter homes are available in your area? Contact Arkansas Real Estate Collective today to discuss your choices!
