Home prices are back up to where they were almost a decade ago. This could be good news or bad news, depending on your situation.
You’re a homeowner, and your home’s value, and perhaps even the amount of equity you have in it will go up. When homes in your neighborhood sell at higher prices, this results in the collective value of the comparable homes in your neighborhood also going up.
You’re thinking about buying a new home, and now you won’t be able to buy as much house for the same amount of money than before. Mortgage interest rates will also continue to rise, but even if the increases are gradual, you’ll want to act before you get priced out in both home price and loan affordability.
Either way, before you get too excited, consider the facts.
Despite market volatility, and no matter what happens with President Trump in office (though markets have largely been bullish since his election), housing prices are only only one indicator of the country’s overall economic health. They’re also always contending with the true downer which is inflation, when your money begins buying way less of goods as they get more and more expensive.
According to CoreLogic data, though home prices are indeed higher and climbing back up (they’re up about 6% from one year ago), they’re still 16% below their 2006 highs once adjusted for inflation.
At the very least, the increases signaled the end of the 4-year losing streak after the Financial Crisis, when home prices hit bottom at 27% below their peak, and when more than nine million American families lost their homes. According to MSN report and CoreLogic data, home prices are expected to rise another 5.2% through September 2017.