The price of housing has been a major news story for years now. It makes sense, considering how important the issue is to so many. For most homeowners, their house is their greatest investment and most important asset. Meanwhile, those who don’t own a house yet would like to get one at a reasonable cost.
For much of the past two years, you’ve likely consistently heard about the increasing cost of housing. But things have really cooled off in the past few months to the point that declining home values seem to be more of a trend than a blip. But is that also true in Lee County, AL? Here’s what you should know:
Declining Home Values
The S&P CoreLogic Case-Shiller National Home Price Index measures home prices across the United States. It’s considered one of the best indications of whether home values are rising or falling and how fast. According to the index, home prices increased rapidly during the COVID-19 pandemic, increasing 40% between June 2020 and June 2022.
That’s when the trend began to turn, however. Due to no small part to the consistent Federal Reserve interest rate hikes, home values began to fall starting in July 2022. According to Case-Shiller, they’ve now fallen for eight consecutive months with March and April of 2023 numbers yet to be released. Overall, the Case-Shiller number has dropped five percent in those eight months.
The Local Impact in Auburn and Opelika
Things have not played out the same way in Lee County as they have nationally. Home prices are flattening, rather than going down. The median sales price in the county for April 2023 was $325,000, which represents a meager 0.7% drop – significantly less than the national average.
However, the total number of home sales has dropped by 40% when compared to this time last year. And the total number of homes on the market and the average amount of time a home spends on the market are both increasing. This would seem to indicate that homeowners are waiting for the right deal, rather than settling for a lower price.
If you’re considering selling your home, an appraisal will help you know how much you should expect to get for it in an ever-changing economy. In and around Auburn, AL, Atlas Valuation is the place to call to get the most accurate number! Call us today at 334 737-6993 to get started!