Home Price Growth Starting to Normalize

Understanding the current state of home prices can be confusing, especially with mixed messages in the media. Some claim that prices are dropping, but actual data tells a different story. This discrepancy often arises from unreliable sources and media misinterpretations of the data.

To clarify, here’s a straightforward explanation based on credible data.

Understanding Regular Patterns in Home Prices

The housing market experiences predictable fluctuations throughout the year, known as seasonality. Spring marks the peak of home buying, with high market activity, which generally remains robust through summer but starts to decline as colder months set in.

Home prices are influenced by this seasonality, appreciating most during high-demand periods. This results in a consistent long-term trend in home prices. The following graph, using Case-Shiller data, illustrates the typical monthly home price changes from 1973 to 2022, highlighting the seasonal patterns:

The graph indicates that home prices increase at the start of the year, but the growth is more pronounced during the spring and summer months. This is due to increased market activity in these seasons. Conversely, as we move into autumn and winter, prices continue to rise but at a slower rate, correlating with reduced market activity.

Seasonality Patterns in 2023

Comparing this year’s data with the long-term trend reveals a return to typical seasonal patterns (refer to the graph below):

The latest data for this year, represented by green bars, aligns more closely with the established seasonal trends, depicted by dark bars. This alignment indicates a shift towards more sustainable growth in home prices, unlike the rapid increases seen in recent years.

In essence, while national home prices are not dropping, their rate of growth is becoming more normalized. It’s important to be cautious of media misinterpretations that might portray this slowdown as a decline in prices. The provided data offers a clearer understanding of the actual market dynamics. If you encounter confusing headlines, seek clarification from a reliable real estate expert.

It’s normal for home price growth to decelerate as the year progresses, but this doesn’t imply a fall in prices. Instead, prices are rising at a more balanced rate, something many experts predict will continue through the end of 2023.

Bottom Line

The return to normal seasonal patterns in home price appreciation is a positive development. For specific inquiries about local price trends, feel free to reach out to Countryside Homes NJ and RE/MAX Select for more information.

Client Testimonials for Countryside Homes NJ

At Countryside Homes NJ and RE/MAX Select, we pride ourselves on delivering exceptional service to our clients. But don’t just take our word for it—read what our satisfied customers have to say. From first-time homebuyers to seasoned real estate investors and new home builders, our clients appreciate our dedication, expertise, and commitment to their success. Here are some of their stories.

David R. New Homeowner

Collaborating with Keith LaBrunda and Heather Montalbano from Countryside Homes NJ and RE/MAX Select streamlined the home-buying process for me. They were attentive to my needs and preferences, ensuring they understood exactly what I was seeking in a home and what was within my financial comfort zone. Keith and Heather provided invaluable assistance during the offer stage, sharing insightful details that enabled me to place a successful bid on my desired property. They recommended associates to assist me with securing a mortgage, conducting home inspections, and acquiring homeowner's insurance. Post-purchase, they continued to be a resource, suggesting local companies to contact for internet, water, waste management, oil, and other essential services. The experience of purchasing a home with Keith LaBrunda and Heather Montalbano was seamless and enjoyable.

Rachel and Andre First Time Homebuyer

As first-time homebuyers, the process of finding and purchasing a home felt daunting. But from the moment we reached out to Heather and Keith at Countryside Homes NJ and RE/MAX Select, our worries were put to rest. Their team was incredibly patient, answering all our questions and guiding us through every step. They took the time to understand our needs and preferences, ensuring that we found the perfect home in a neighborhood we love. We were especially impressed by their vast knowledge of the local market and their commitment to ensuring we got the best deal possible. We can't thank them enough for making our dream of homeownership a reality. If you're in the market for a new home, we highly recommend Heather and Keith at Countryside Homes NJ and RE/MAX Select. They truly go above and beyond for their clients!

Prestia Family New Homeowners

From the moment we began our home search, Heather at Countryside Homes NJ and RE/MAX Select stood out as the epitome of professionalism and dedication. Her team's in-depth knowledge of the Rockaway Borough area and their unwavering commitment to our needs made our home buying journey not only smooth but truly enjoyable. As new homeowners in Rockaway Borough, NJ, we can confidently say that choosing Heather at Countryside Homes NJ and RE/MAX Select was the best decision we made. Her expertise, patience, and genuine care for our family's needs transformed what could have been a stressful process into a memorable and joyous occasion. We are beyond grateful for her support and would highly recommend her and her team to anyone looking to find their dream home. Thank you for turning our dreams into reality!