The latest Existing Home Sales report showed that the median home price declined on an annual basis for the first time in almost 11 years! Big headline, right?!
First of all, the decline was only 0.2% - and it was for the median home price, which is NOT the same as appreciation. FHFA’s latest appreciation report showed that home prices rose 5.3% year over year. And according to Case-Shiller, they rose 3.8% year over year. These are the two best ways to measure home price appreciation.
So, what's the difference between the median home price and actual appreciation?
The median home price is the middle price point of homes sold. If more lower-priced homes are sold versus more expensive-priced homes in a given month, it will skew that median home price down. In fact, the median home price can move lower even when home prices are appreciating, depending on the mix of sales.
But the media is making a big deal about this data, trying to scare people out of buying a home. That's what they've been trying to do for the past ten years, and they've been wrong.
Don't listen to the negative media. Home appreciation, while modest, should be strong in the year ahead. Reach out to me today and learn how you can benefit. (805) 630-2869
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