Thinking about buying a home or selling your current one to find a better fit? If so, you might be wondering what’s going on with home prices these days. Here’s the scoop.
The latest national data from Case-Shiller and the Federal Housing Finance Agency (FHFA) shows they’re going up (see graphs below):
As you can see, home prices were rising for most of 2023. But over the course of December and January, they were virtually flat – which is pretty normal for that time of year.
But here’s what you need to know now. As of February, when the spring market kicked off, prices were on the rise again.
Home Prices Are Going Up in Most of America’s Top Cities
After seeing a jump in home prices nationally in February, you might be wondering if they’re going up in your area, too. While it depends on where you live, prices are rising in 18 of the top 20 cities Case-Shiller reports on in the monthly price index (see chart below):
Most experts also think home prices will keep rising and end the year on a high note. Forbes explains why:
“Even as mortgage rates have reached their highest level since November, persistent demand coupled with limited housing supply are key drivers pushing home values upward.”
How This Impacts You
- For Buyers: If you’re ready, willing, and able to buy a home, purchasing before prices go up even more might be a smart choice, since home values are expected to keep climbing.
- For Sellers: Prices are going up because there still aren’t enough homes available for sale right now compared to today’s buyer demand. So, if you work with an agent to price your house right, you might receive multiple offers and sell quickly.
Bottom Line
the rapid climb in home prices across the top cities underscores the dynamic nature of today’s real estate market. Cities like Austin, Seattle, and Miami are experiencing unprecedented growth, driven by a combination of strong local economies, an influx of new residents, and the high demand for housing. This surge presents both challenges and opportunities for prospective homebuyers and investors.
For buyers, the rising prices necessitate a strategic approach. It’s essential to act swiftly, secure pre-approval for mortgages, and possibly look into alternative financing options. Moreover, partnering with experienced real estate agents who have in-depth knowledge of the local markets can provide a significant advantage in navigating these competitive landscapes.
Investors, on the other hand, can capitalize on the appreciating property values. These cities offer promising returns on investment due to their robust economic fundamentals and continued population growth. However, thorough market analysis and due diligence are crucial to identify the most lucrative opportunities and mitigate potential risks.
For current homeowners in these top cities, the increase in home prices enhances their property’s value, offering them greater equity and potential profit if they choose to sell. It also provides an opportunity to refinance their mortgages at favorable terms, leveraging the increased home value.
Overall, the climbing home prices in these top cities reflect broader economic trends and shifting demographics. Staying informed and adaptable will be key for all stakeholders to maximize their benefits in this evolving market. Whether buying, investing, or selling, the current environment holds significant potential for those who navigate it wisely.
The data shows home prices are increasing nationally. Let’s chat to see exactly what’s going on with prices in our neighborhood.
