National Market Update – May 2023: Insights on US Home Prices is here! Thinking about buying but worried about a volatile national real estate outlook? Let’s slow down, and put things into perspective. Hi, I’m Kimmy Rolph and I represent buyers and sellers on The Main Line PA and I like to look at broader national trends to help buyers get the best rates for financing, but for sellers, we really need to consider that The Main Line conditions are like a microeconomy and buyers of these types of homes are not necessarily tied to lending conditions. Let’s look at what is happening nationally for buyers and through the of The Main Line.
Experts at Corelogic predict that on a year-over-year basis, prices will increase by around 4.6% from March 2023 to March 2024. Keep in mind that the year-over-year home price growth rate in March 2023 has slowed to its lowest level since the spring of 2012, but they have also been rising for 134 consecutive months. Prices have declined compared to the previous year in 10 states, primarily in the Western region. This decline relating to affordability and inventory, does not effect Main Line sellers and buyers. However, we have also seen the demand for higher-priced homes slow, resulting in a faster decline in appreciation for that segment of the market.
Several factors may contribute to the hesitancy among potential homebuyers in other regional markets. These include concerns about inflation, slowing job gains and wage growth, the possibility of a recession, additionally, interest rates are remaining higher than the 5.5% mortgage rate threshold that typically attracts more buyers. While, CoreLogic projects a continued decline in annual home price growth during the spring and early summer months, they project a rebound later in 2023.
The housing markets in various parts of the country show mixed signals, many large metropolitan areas have shown signs of improvement, with the US recording two consecutive months of monthly price gains. The 1.6% month-over-month increase in home prices in March 2023 was double the average seen between 2015 and 2020.
This rebound in home prices underscores persistent limited housing inventory in the current market cycle, especially on The Main Line. The mobility resulting from remote working conditions has also become a driving force behind home prices in certain areas of the country, like The Main Line.
Where CoreLogic HPI provides extensive and detailed coverage of the housing market, incorporating a wealth of data from various sources, the index also offers valuable insights into price movements across different market segments. While it is also updated monthly and provides the most up-to-date and accurate indication of home-price trends, it also lacks the information a reputable realtor has on your home price, in your local market, at that moment. For this reason, licensed realtors should be consulted if you are thinking about selling your home. I have extensive experience in home pricing to sell and am a negotiation expert for buyers. If you would like to know your home value, please reach out.
Did you find National Market Update – May 2023: Insights on US Home Prices useful? Follow along on our blog here!
