“Broad-based Slowdown for Home Prices”
That is a headline you might have seen over the past weekend. And though it is true, we must understand the story behind the headline.
Case Shiller reports on the year-over-year difference in home values. Their
latest report revealed that the rate of appreciation has slowed –
not that prices are falling!! Here is exactly what they said:
“The 20-City Composite gained 4.9% year-over-year, compared to 5.6% in August.”
Prices are still up this month over last year’s values (4.9%) just not as much as they were last month (5.6%).
Home Prices are NOT Falling.
As a matter of fact, the latest
Home Price Expectation Survey by
Pulsenomics (a survey of a nationwide panel of over one hundred economists, real estate experts and investment & market strategists) showed that home prices will continue to appreciate for the next several years.
Bottom Line
Both first time buyers and families thinking of moving-up to their dream home can be assured that their investment in their new home makes sense.
The National Association of Realtors’ most recent Existing Home Sales Report revealed that home sales were up rather dramatically over last year in five of the six price ranges they measure. Only those homes priced under $100,000 showed a decline (-6%). Every other category showed a minimum increase of at least 9.7%.
