Curious about the housing market and what’s up with home prices? Relax, it’s not as dramatic as the headlines suggest. Instead of falling, home prices are just getting back to their usual rhythm. Here’s the lowdown in plain language:

Every year, the housing market experiences ups and downs, following a natural pattern known as seasonality. Spring and summer are peak seasons for homebuying, leading to increased demand and higher prices. As fall and winter roll in, activity cools down, but prices still appreciate.

Take a look at the graph below – it shows the typical ebb and flow of home prices from 1973 to 2022. Notice how prices spike during the spring and summer, cool off in the fall, and stabilize in the winter:

Now, after some ‘unicorn’ years, higher mortgage rates are bringing back the usual seasonal trends. According to Selma Hepp, Chief Economist at CoreLogic, it’s a return to “regular seasonal averages.”

Here’s the key takeaway: the buzz about home prices might sound alarming, but it’s just a return to normal. Words like ‘appreciation,’ ‘deceleration,’ or ‘depreciation‘ might pop up in the news, but don’t stress. It simply means prices are either going up, slowing down a bit, or decreasing – nothing to fear.

The fast and furious growth in home prices we saw recently couldn’t last forever. Now, we’re seeing a more reasonable pace – a deceleration of appreciation, not a price drop.

Long story short, as we move through the year, expect the media to chatter about home prices. If you have any questions or need the scoop on our local market, let’s chat. No need to stress – the return of normal seasonality is just bringing things back to a comfortable groove.