The Worst Home Price Declines in L.A. and Beverly Hills, CA Are Behind Us
The Worst Home Price Declines in L.A. and Beverly Hills, CA Are Behind Us | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
If you're keeping up with the news, you might be feeling uncertain about the current state of home prices and wondering if the worst is yet to come. However, it's important to note that today's headlines are unnecessarily negative, and the latest data tells a much more positive story. While local home price trends can vary across markets, let's take a look at what the national data reveals.
When we examine the year-over-year view, we see that home prices have remained positive, albeit with slower appreciation compared to the peak of the pandemic. To gain a more detailed understanding of the market trends, it's necessary to analyze monthly data.
A closer look at the monthly data reveals a tale of two halves in the housing market over the past year. In the first half of 2022, home prices were steadily climbing, reaching their peak in June. However, in July, prices began to decline (highlighted in red on the graphs). By approximately August or September, the trend started stabilizing. As we examine the most recent data for the early part of 2023, the graphs also depict a recent rebound in momentum, with prices ticking back up. Monthly changes in home prices are gaining steam as we enter the busier spring season.
While it's important to remember that short-term trends require more time to solidify, the fact that all three reports indicate stabilized prices is an encouraging sign for the housing market. The month-over-month data strongly suggests a national shift is currently taking place. In essence, home prices are starting to tick back up.
Andy Walden, Vice President of Enterprise Research at Black Knight, shares his insights on home price trends:
"Just five months ago, prices were declining on a seasonally adjusted month-over-month basis in 92% of all major U.S. markets. Fast forward to March, and the situation has done a literal 180, with prices now rising in 92% of markets from February."
Selma Hepp, Chief Economist at CoreLogic, explains that the limited supply of homes available for sale is contributing to this positive turn:
"...prices in many large metros appeared to have turned the corner, with the U.S. recording a second month of consecutive monthly gains... The monthly rebound in home prices underscores the lack of inventory in this housing cycle."
So, what does all this mean for homeowners in Beverly Hills and Los Angeles?
💼 Sellers: If you've been hesitant to sell due to concerns about home prices and their impact on your property's value, it may be time to reconsider. The latest data shows a favorable turn, and partnering with a knowledgeable agent can help you confidently list your house without further delay.
🏡 Buyers: If you've been waiting for the right time to buy, fearing a decrease in property value, you can now breathe a sigh of relief. Things are looking up, and purchasing now allows you to make your move before home prices climb further, providing you with the opportunity to own an asset that typically appreciates over time.
In conclusion, if you've postponed your plans to move due to worries about falling home prices, the data indicates that the worst is already behind us, and prices are rising nationally. Let's connect so I can provide you with expert insights into the local market and explain how these trends specifically apply to home prices in Beverly Hills and Los Angeles. 🏡📈✨