If you’re feeling a bit muddy on what’s happening with home prices, that’s no surprise. Some people are still saying prices are falling, even though data proves otherwise. Part of that misconception is because people are getting their information from unreliable sources. But it’s also coming from some media coverage misrepresenting what the data really shows.

So, to keep things simple, here’s what you really need to know using real data you can trust.

Normal Home Price Seasonality Explained

In the housing market, there are predictable ebbs and flows that happen each year. It’s called seasonality. Spring is the peak homebuying season when the market is most active. That activity is typically still strong in the summer but begins to wane as the cooler months approach.

Home prices follow along with seasonality because prices appreciate most when something is in high demand. That’s why there’s a reliable lo. ...

For some perspective on today’s mortgage interest rates, here’s how average 30-year rates have changed from year to year over the past five decades.



Year
Average 30-Year Rate
Year
Average 30-Year Rate
Year
Average 30-Year Rate


1975
9.05%
1991
9.25%
2007
6.34%


1976
8.87%
1992
8.39%
2008
6.03%


1977
8.85%
1993
7.31%
2009
5.04%


1978
9.64%
1994
8.38%
2010
4.69%


1979
11.20%
1995
7.93%
2011
4.45%


1980
13.74%
1996
7.81%
2012
3.66%


1981
16.63%
1997
7.60%
2013
3.98%


1982
16.04%
1998
6.94%
2014
4.17%


1983
13.24%
1999
7.44%
2015
3.85%


1984
13.88%
2000
8.05%
2016
3.65%


1985
12.43%
2001
6.97%
2017
3.99%


1986
10.19%
2002
6.54%
2018
4.54%


1987
10.21%
2003
5.83%
2019
3.94%


1988
10.34%
2004
5.84%
2020
3.10%


1989
10.32%
2005
5.87%
2021
2.96%


1990
10.13%
2006
6.41%
2022
5.34%



Source: Freddie Mac ...

(Getty Images)


TRENDS
Mortgage Rates Finally Drop—but Is It Enough To Revive the Fall Housing Market?
 By Margaret Heidenry
Sep 1, 2023
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After rising for an alarming five weeks straight, mortgage rates have at long last cooled a bit.
For the week ending Aug. 31, rates for 30-year fixed-rate loans averaged 7.18%, according to Freddie Mac. That’s a welcome drop from last week’s 22-year high of 7.23%, but rates are still formidable enough to discourage many homebuyers from shopping—and homeowners from selling.
“Today’s buyers are facing still-high home prices, limited for-sale inventory, and decades-high mortgage rates,” Realtor.com® economist research analyst Hannah Jones says in her analysis. At the same time, “sellers are hesitant to sell as it would mean giving up a lower mortgage rate in exchange for a higher one.&rdq ...

Even though activity in the housing market has slowed from the frenzy that was the ‘unicorn’ years, it’s still a seller’s market because the supply of homes for sale is so low. But what does that really mean for you? And why are conditions today so good if you want to sell your house?

The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows housing supply is still astonishingly low. Housing inventory is measured by the number of available homes on the market. It’s also measured by months’ supply, meaning the number of months it would take to sell all those available homes based on current demand. In a balanced market, there’s usually about a six-month supply. Today, we have only about 3 months’ supply of homes at the current sales pace (see graph below): 

As the visual shows, given the current inventory of homes, it’s still . ...

Some Highlights


Looking at monthly home price data from six expert sources shows the worst home price declines are behind us, and they’re rising again nationally.



If you’ve put your plans to move on pause because you were worried about home prices crashing, this rebound is good news.



Let’s connect so you know what’s happening with prices in our area. ...