For many Americans, the home they own is their greatest and most important investment. When it comes to cashing in on that investment, they understandably want to make sure it’s the right time to do so. Whether you’re looking to downsize, upsize, move to another area, or just cash in on property you own, you’ll be better off doing so in a “seller’s market.”
That’s certainly been the case recently – the average price of homes rose dramatically in recent years, allowing sellers to get significantly more for their homes than they would have if they’d sold in the few years prior. But if you’re looking to sell soon, you’re likely wondering if it’s too late or if you missed the party. Here’s what you should know:
A Surge in the Value of Homes
The average price of a home in the United States had been on the rise since the end of the recession just over a decade ago, but it began to skyrocket in 2020. The number increased by 11.3% that year and 17.8% the following year. Overall, home prices increased 42% between Jan. 2020 and June 2023.
Factors that Could Decrease Prices
Housing cost increases were matched by inflation across the board throughout 2021, forcing the Federal Reserve to act quickly. They raised interest rates 11 times starting in March 2022 and stopping only in recent months. One of the effects of this was the average interest rate for a 30-year mortgage in the United States nearly doubling in that time. This priced a lot of buyers out of the market, causing a slight dip in the cost of housing late last year.
But that relief for buyers was short lived. The S&P CoreLogic Case-Shiller National Home Price Index, which measures home prices across the United States, reached a new high in July 2023 – the most recent reported month.
What’s Next and Why?
When it comes to home prices in 2024, experts aren’t discussing whether they will continue to rise, but by how much. The National Association of Realtors experts costs to rise by 2.6%, Zillow expects an increase of 6.5%, and Freddie Mac is expecting a more modest bump at 0.8%. The reason is simple: there is a major housing shortage across the country. Some estimates put that number as high as 3.8 million housing units. Essentially, there are too many buyers and not enough homes to buy, putting sellers at an advantageous position that should continue at least into next year.
All indications point to home valuations continuing to go up into 2024. If you’re interested in finding out just how much your home’s value has increased, Atlas Valuation can be your guide. Our expert appraisers will give you a fair and accurate assessment of where the value of your home stands. Call us at 334-737-6993 to get started today!