[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$f1xsb6v2sly5ou":3,"$ffeh0925h8cuz":43,"$f2emv3tus0uf1":47,"$fbwk2pqjjqsc7":51},{"item":4,"previous":31,"next":37},{"id":5,"slug":6,"title":7,"description":8,"excerpt":9,"contentType":10,"featuredImage":11,"bannerImage":9,"body":12,"agentsBottomLine":13,"bodyImage":14,"isInfographic":15,"categories":16,"isVideo":15,"videoThumbnail":9,"videoSource":9,"publishedAt":29,"updatedAt":30},54367,"home-prices-arent-declining-but-headlines-might-make-you-think-they-are","Home Prices Aren’t Declining, But Headlines Might Make You Think They Are","\u003Cp>If you’ve seen the news lately about home sellers slashing prices, it’s a great example of how headlines do more to terrify than clarify.\u003C\u002Fp>","","blog","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20240610\u002F20240612-Home-Prices-Aren-t-Declining-But-Headlines-Might-Make-You-Think-They-Are-original.png","\u003Cp>If you’ve seen the news lately about home sellers slashing prices, it’s a great example of how headlines do more to terrify than clarify. Here’s what’s really happening with prices.\u003C\u002Fp>\u003Cp>The bottom line is \u003Ca href=\"\u002F2024\u002F05\u002F13\u002Fhome-prices-are-climbing-in-these-top-cities\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">home prices\u003C\u002Fa> are higher than they were a year ago at this time, and they’re expected to keep rising, just at a slower pace.\u003C\u002Fp>\u003Cp>But a recent article from \u003Cem>Redfin \u003C\u002Fem>notes,\u003C\u002Fp>\u003Cblockquote>\u003Cem>“Price Drops Hit Highest Level in 18 Months As High Rates Dampen Buyer Demand.” \u003C\u002Fem>\u003C\u002Fblockquote>\u003Cp>And that might make you think prices are declining.\u003C\u002Fp>\u003Cp>\u003Cspan style=\"color: rgb(51, 51, 51);\">Now, while it’s true the latest report from \u003C\u002Fspan>\u003Cem style=\"color: rgb(51, 51, 51);\">Realtor.com\u003C\u002Fem>\u003Cspan style=\"color: rgb(51, 51, 51);\"> also shows \u003C\u002Fspan>\u003Ca href=\"https:\u002F\u002Fwww.realtor.com\u002Fresearch\u002Fmay-2024-data\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">16.6%\u003C\u002Fa>\u003Cspan style=\"color: rgb(51, 51, 51);\"> of homes on the market had price reductions in May, which is up from 12.7% last May, that doesn’t mean overall home prices are falling. \u003C\u002Fspan>\u003C\u002Fp>\u003Cp>\u003Cstrong>The key is knowing the difference between the asking price and the sold price. \u003C\u002Fstrong>\u003C\u002Fp>\u003Ch4>\u003Cstrong>Understanding Asking Price vs. Sold Price\u003C\u002Fstrong>\u003C\u002Fh4>\u003Cp>In essence, the asking price, also known as a listing price, is the amount a seller hopes to get for their home when they list it. In reality, sellers can’t just put any \u003Ca href=\"\u002F2024\u002F05\u002F24\u002Fyour-agent-is-the-key-to-pricing-your-house-right-infographic\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">price tag\u003C\u002Fa> on their house and expect it to sell for top dollar. Today’s buyers are savvy customers, and when they aren’t willing to pay a premium for a home because their budgets are strained by higher \u003Ca href=\"\u002F2024\u002F05\u002F02\u002Fwhat-is-going-on-with-mortgage-rates\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">mortgage rates\u003C\u002Fa>, sellers need to adjust. And that’s what’s happening right now.\u003C\u002Fp>\u003Cp>Based on market factors and what offers that seller receives, that asking price can change. If a seller isn’t getting much foot traffic, you may see them revise the price and make an adjustment to reignite interest in the home – and sometimes that’s because they’ve \u003Ca href=\"\u002F2024\u002F04\u002F02\u002Fwhy-overpricing-your-house-can-cost-you\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">overpriced it\u003C\u002Fa> from the start. That’s where price reductions come in, and when you see \u003Cem>“price drops” \u003C\u002Fem>in a headline, it sounds like declining home prices.\u003C\u002Fp>\u003Cp>Mike Simonsen, CEO and Founder of \u003Cem>Altos Research\u003C\u002Fem>, \u003Ca href=\"https:\u002F\u002Fwww.housingwire.com\u002Farticles\u002Funsold-inventory-is-rising-across-the-country\u002F#:~:text=Today%2C%2034.8%25%20of%20homes%20on,each%20week%20than%20last%20year.\" rel=\"noopener noreferrer\" target=\"_blank\">says\u003C\u002Fa>:\u003C\u002Fp>\u003Cblockquote>\u003Cem>“Not only is the share of homes with price cuts elevated compared to one year ago, but more price cuts are happening each week than last year.”\u003C\u002Fem>\u003C\u002Fblockquote>\u003Cp>On the other hand, the final sold price is the amount a buyer actually pays when the transaction is complete.\u003C\u002Fp>\u003Cp>\u003Cstrong>Here’s the most important thing to note\u003C\u002Fstrong>: \u003Cstrong>Actual sold prices are \u003C\u002Fstrong>\u003Ca href=\"\u002F2024\u002F04\u002F22\u002Fwhat-you-really-need-to-know-about-home-prices-1\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">\u003Cstrong>still rising\u003C\u002Fstrong>\u003C\u002Fa>\u003Cstrong>, and they’re expected to continue to do so at least over the \u003C\u002Fstrong>\u003Ca href=\"\u002F2024\u002F05\u002F20\u002Fwhats-next-for-home-prices-and-mortgage-rates\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">\u003Cstrong>next 5 years\u003C\u002Fstrong>\u003C\u002Fa>\u003Cstrong>.\u003C\u002Fstrong>\u003C\u002Fp>\u003Ch4>\u003Cstrong>What Does This Mean for Home Prices?\u003C\u002Fstrong>\u003C\u002Fh4>\u003Cp>\u003Cstrong>So, while there's been an increase in price reductions recently, this doesn't mean overall home values are declining.\u003C\u002Fstrong> Instead, it’s a sign that demand is moderating. And, as a result, sellers are adjusting their expectations to align with today's market reality.\u003C\u002Fp>\u003Cp>Even with more price reductions, home values are still growing on an annual basis, as they do nearly \u003Ca href=\"\u002F2024\u002F03\u002F13\u002Fyour-home-is-a-powerful-investment\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">every year\u003C\u002Fa> in the housing market. According to the \u003Cem>Federal Housing Finance Agency\u003C\u002Fem> (FHFA), home prices went up \u003Ca href=\"https:\u002F\u002Fwww.fhfa.gov\u002FDataTools\u002FTools\u002FPages\u002FHouse-Price-Index-(HPI).aspx\" rel=\"noopener noreferrer\" target=\"_blank\">6.6%\u003C\u002Fa> over the last year (\u003Cem>see below\u003C\u002Fem>):\u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20240610\u002F20240612-Percent-Change-in-Home-Prices-original.png\" rel=\"noopener noreferrer\" target=\"_blank\">\u003Cimg src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20240610\u002F20240612-Percent-Change-in-Home-Prices-original.png\" alt=\"No Caption Received\">\u003C\u002Fa>\u003C\u002Fp>\u003Cp>This map shows how prices rose just about everywhere in the country, indicating the market is not in decline.\u003C\u002Fp>\u003Cp>So, while seller price reductions are often a leading indicator that prices may moderate in the months ahead, which experts have been saying for a while is expected to happen, they aren’t necessarily reason for alarm. The same article from \u003Cem>Redfin \u003C\u002Fem>also states:\u003C\u002Fp>\u003Cblockquote>\u003Cem style=\"color: black;\">“. . .those metrics suggest sale-price growth could soften in the coming months as persistently high mortgage rates turn off homebuyers. For now, the median-home sale price is up 4.3% year over year to another record high. . .”\u003C\u002Fem>\u003C\u002Fblockquote>\u003Cp>\u003Cspan style=\"color: rgb(51, 51, 51);\">And with \u003C\u002Fspan>\u003Ca href=\"\u002F2024\u002F05\u002F16\u002Fthe-number-of-homes-for-sale-is-increasing\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">inventory\u003C\u002Fa>\u003Cspan style=\"color: rgb(51, 51, 51);\"> as tight as it is today, \u003C\u002Fspan>\u003Ca href=\"\u002F2023\u002F11\u002F22\u002Fhome-prices-still-growing-just-at-a-more-normal-pace\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">price moderation\u003C\u002Fa>\u003Cspan style=\"color: rgb(51, 51, 51);\"> is much more likely in upcoming months than price declines. \u003C\u002Fspan>\u003C\u002Fp>\u003Ch4>\u003Cstrong>Why This Is Good News for Buyers and Sellers\u003C\u002Fstrong>\u003C\u002Fh4>\u003Cp>For buyers, more realistic asking prices mean a better chance of securing a home at a fair price. It also means you can enter the market with more confidence, knowing prices are stabilizing rather than continuing to skyrocket.\u003C\u002Fp>\u003Cp>For sellers, understanding the need to adjust your asking price can lead to faster sales and fewer price negotiations. Setting a realistic price from the start can attract more serious buyers and lead to smoother transactions.\u003C\u002Fp>","\u003Cp>While the uptick in price reductions might seem troubling, it’s not a cause for concern. It reflects a market adjusting to new conditions. Home prices are continuing to grow, just at a more moderate pace. \u003C\u002Fp>","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20240610\u002F20240612-Percent-Change-in-Home-Prices-original.png",false,[17,21,25],{"id":18,"name":19,"slug":20},5,"For Buyers","buyers",{"id":22,"name":23,"slug":24},6,"For Sellers","sellers",{"id":26,"name":27,"slug":28},9,"Home Prices","home-prices","2024-06-12T10:30:00Z","2024-06-12T10:30:56Z",{"id":32,"slug":33,"title":34,"featuredImage":35,"publishedAt":36,"contentType":10,"isVideo":15},53935,"savings-strategies-every-first-time-homebuyer-needs-to-know","Savings Strategies Every First-Time Homebuyer Needs To Know","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20240604\u002F20240611-Savings-Strategies-Every-First-Time-Homebuyer-Needs-To-Know-original.png","2024-06-11T10:30:00Z",{"id":38,"slug":39,"title":40,"featuredImage":41,"publishedAt":42,"contentType":10,"isVideo":15},54434,"homebuilders-arent-overbuilding-theyre-catching-up","Homebuilders Aren’t Overbuilding, They’re Catching Up","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20240611\u002F20240613-Homebuilders-Aren-t-Overbuilding-They-re-Catching-Up-original.png","2024-06-13T10:30:00Z",{"cover":44,"open":45,"shareSpread":46},"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Cover-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Spread-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Magazine-original.png",{"cover":48,"open":49,"shareSpread":50},"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Sellers-Guide-Cover-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Sellers-Guide-Spread-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Sellers-Guide-Magazine-original.png",[52,56,57,58,62,66,67,71,75,79,83,87,91,95,99,103,107,111,115,119,123,127,131,135,139,143,147,151,155,159],{"id":53,"name":54,"slug":55},1,"Uncategorized","uncategorized",{"id":18,"name":19,"slug":20},{"id":22,"name":23,"slug":24},{"id":59,"name":60,"slug":61},7,"Foreclosures","foreclosures",{"id":63,"name":64,"slug":65},8,"Infographics","infographics",{"id":26,"name":27,"slug":28},{"id":68,"name":69,"slug":70},11,"First-Time Buyers","first-time-buyers",{"id":72,"name":73,"slug":74},34,"Senior Market","senior-market",{"id":76,"name":77,"slug":78},35,"Mortgage Rates","mortgage-rates",{"id":80,"name":81,"slug":82},38,"Move-Up","move-up",{"id":84,"name":85,"slug":86},41,"For Sale by Owner","for-sale-by-owner",{"id":88,"name":89,"slug":90},42,"Featured","featured",{"id":92,"name":93,"slug":94},45,"New Construction","new-construction",{"id":96,"name":97,"slug":98},52,"Luxury \u002F Vacation","luxury--vacation",{"id":100,"name":101,"slug":102},53,"Rent vs. Buy","rent-vs-buy",{"id":104,"name":105,"slug":106},80,"Time-sensitive","time-sensitive",{"id":108,"name":109,"slug":110},81,"Outdated","outdated",{"id":112,"name":113,"slug":114},147,"Internal","internal",{"id":116,"name":117,"slug":118},148,"Do Not Autopost","do-not-autopost",{"id":120,"name":121,"slug":122},320,"Inventory","inventory",{"id":124,"name":125,"slug":126},321,"Agent Value","agent-value",{"id":128,"name":129,"slug":130},322,"Affordability","affordability",{"id":132,"name":133,"slug":134},323,"Buying Tips","buying-tips",{"id":136,"name":137,"slug":138},324,"Downsize","downsize",{"id":140,"name":141,"slug":142},325,"Economy","economy",{"id":144,"name":145,"slug":146},326,"Equity","equity",{"id":148,"name":149,"slug":150},327,"Forecasts","forecasts",{"id":152,"name":153,"slug":154},328,"Selling Tips","selling-tips",{"id":156,"name":157,"slug":158},339,"Expired\u002FWithdrawn\u002FCanceled","expiredwithdrawncanceled",{"id":160,"name":161,"slug":162},340,"Price It Right\u002FOverpricing","price-it-rightoverpricing"]