Not Sure About Home Prices?

If you’re a little befuddled about what’s going on with home prices lately, you’re not alone.

As a buyer, you may be worried about paying more than you should. And if you’re thinking of selling, you could be concerned about not getting the price you’re aiming for. With so much information (and dis-information) out there, it can be hard to figure out your next move.

So, here’s a quick breakdown to help clear things up and show you what’s really happening with prices — whether you’re thinking about buying or selling.

Home Price Growth Is Slowing, but Prices Aren’t Falling Nationally

Throughout the country, home price appreciation is moderating. What that means is, prices are still going up, but they’re not rising as quickly as they were in recent years. The graph below uses data from Case-Shiller to make the shift from 2023 to 2024 clear:

Be assured, this doesn’t mean home prices are falling. In fact, all the bars in this graph show price growth. So, while you might hear talk of prices cooling, what that really means is they’re not climbing as fast as they were when they skyrocketed just a few years ago.

What’s Next for Home Prices? It’s All About Supply and Demand 

Where will prices go from here? The answer depends on supply and demand, and it’s going to vary by local market.

Nationally, the number of homes for sale is going up, but there still aren’t enough to meet today’s buyer demand. That’s keeping upward pressure on prices – even though recent inventory growth has caused home price appreciation to slow.

On Cape Cod, the inventory number for August for single family homes was 753. A year ago, 562 single family homes were for sale.

The median sales price of a single family home last August was $690,000. This August it’s $740,000.

Danielle Hale, Chief Economist at Realtor.com, says: “. . . today’s low but quickly improving for-sale inventory has ushered in more market balance than would otherwise be expected . . . This should help home prices maintain a slower pace of growth.” 

And here’s another thing you may not have considered that could play a role in where prices go from here. Since experts say mortgage rates should continue to decline, it’s likely more buyers will re-enter the market in the months ahead. If demand picks back up, that could make prices climb a bit further.

Real Estate is Local

While national trends give a big-picture view, real estate is always local — especially when it comes to prices. What’s happening on Cape Cod might be different from the national average based on supply and demand. That’s why it’s crucial to get local insights from knowledgeable real estate practitioners like us.

Demand on Cape remains high. Inventory is up, but it could be better.

And by the way, prices are not falling on Cape. What we are seeing, however, is an increase in sales price reductions. That’s because some sellers have unrealistic views of what their homes are worth in today’s market.

What your neighbors sold their house for last year, may not be your price today. Other homes currently for sale in your neighborhood may not be comparable, even if you all live close to a beach. If a nearby property currently on the market has an updated kitchen and yours is 15 years old, that owner can ask — and probably get — a higher price. Same thing if their roof is newer and yours is reaching the end of its useful life.

If you’re planning to sell, we can help you price your house accurately and suggest a strategy to help you receive the highest possible price. Just last week, we put under contract a home for $50,000 over asking price because the seller followed our suggestions.

And when you’re ready to buy, we can find the right home that fits your budget and your needs. (And negotiate the most favorable purchase price for you.)

Bottom Line

Home prices are still rising, just not as quickly as before. Whether you’re thinking about buying, selling, or just curious about what your house is worth, let’s connect at 508-360-5664 or [email protected] so you have the personalized guidance you need.

Let’s talk soon…

Mari and Hank

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.