What every homeowner needs to know...

Deciding whether to sell your home is difficult. When do I do it? Where do we move too? Is it the right time? Reading the headlines these days will make you feel like the sky is falling, but is that the truth? Here is what you need to know...

Home Prices, are they dropping?

You have most likely seen article after article mentioning a drop in home values, however it is important to remember these headlines are meant to be attention grabbers. If they weren't, you probably wouldn't click on them. Unfortunately, the more you read into it, the more you realize the full picture isn't painted here. 

Home pricing is down month-over-month in many markets, some more than others. Luckily, the greater Atlanta area has held more stable than many other markets. Year-over-over, prices are still up 7.5%, which is no laughable figure. Some cities were higher and some lower.  The graph below shows pricing data from the FMLS, painting a clearer picture of what’s going on with prices. 

Carson...Are you telling me that pricing and demand tends to be seasonal? 

Yup, the cat is out of the bag on this one, and as you can see by the chart above, real estate pricing is rather seasonal. Prices tend to rise in the spring/summer as demand picks up, this tends to be the most popular time to move. Then, pricing tends to trend down Q4-Q1 as demand begins to soften in the colder months. These past 6 months or so, we have seen a stronger pullback in demand in response to higher mortgage rates, we expected this. 

The headlines are turning all eyeballs to this instead...

Which without context looks bad, hmmm I wonder why they do it... What's important here is to notice the long-term story. Pricing goes up, prices go down. Nothing happens in a straight line, not life, love, and not investments. While home price appreciation is coming down month-over-month, appreciation is still happening at a strong pace year-over-year. During more normal years (other then 21 & 22), we have seen 3-4% annual appreciation. This is most likely where we are headed back to, and it is a good thing for the long-term health of the real estate market. 

What does this mean for my equity?

While the days of cashing in 20% price appreciation are over, in the Metro Atlanta market, your home’s value is still up 7-12% over last year. This is still a very sizable gain compared to more consistent levels of appreciation (3-4%).

The takeaway here? Don't just pay attention to the media headlines if/when you’re wanting to sell. Over the past couple years, your home has likely gained a considerable margin of equity. Consult a real estate professional who can give you the data and properly interpret it so you can make an educated and sensible decision. 

If you have any questions or there is anything I can help you with, we would love to help! 

Carson, 404-680-0710

Posted by Carson Hulak on


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