For over a year now, the percentage of home appreciation on a year-over-year basis has decreased each month. The question out there has been how far would annual appreciation fall in our area. Based on what I am seeing now, it seems that we are finally getting the answer for our area.
I’m starting to sense that home values are beginning to stabilize in our region and that we may see appreciation beginning to accelerate again in some parts of our market. I think a big part of this change in the market is the result of much lower mortgage rates than expected. The lower rates have caused more buyers to be in the market to buy a home than expected.
My findings that home appreciation has bottomed-out was also confirmed in a recent survey of real estate agents and two additional housing reports recently released:
Realtors who responded to the National Association of Realtors Confidence Index Survey were modestly optimistic about home price growth expectations over the next 12 months. Respondents expect home prices to typically increase 1.9 percent nationally, up from 1.4 percent in the January survey.
In CoreLogics latest Home Price Index report, analysts at CoreLogic increased their projection for home appreciation for the next twelve months to 4.7% as compared to the 4.6% the projected in their previous report.
And in Pulsenomics 2019 first quarter Home Price Expectation Survey, the nationwide panel of over one hundred economists, real estate experts, and investment and market strategists increased their projection for home value growth this year to 4.3% compared to the 3.8% increase they had projected in the fourth quarter of 2018.
So agents working the business every day, one of the premier data companies in the real estate space, and one hundreds housing experts all agree with me: that home price appreciation has ended its decline and looks to be stabilizing and may even begin to accelerate.
If you want to talk more about the improvement in our local real estate market, feel free to reach out to me.