What experts are saying about home values during this market shift.
With all the talk of uncertainty in this economy, many homeowners are worried that things are going downhill and home values are depreciating. If this is something you’re concerned about, I‘m sharing some information that I hope will give you peace of mind.
First, to define it, depreciation is when something declines in value over time. An example of this is your car—as soon as you drive it off the lot, your car’s value will consistently decrease. Historically, home prices appreciate (or increase in value) over time. If you’re a homeowner or have been watching home prices over the last couple of years, you have seen them appreciate at an incredibly fast rate. However, this has recently changed, and that is why people are so worried.
“We’re experiencing deceleration, not depreciation.”
Here is the reality of the situation: Experts agree that we are not seeing home values depreciate. Instead, we are seeing deceleration. Going back to the car analogy: When the speed limit goes down, you slow down, but you’re still moving forward. That’s deceleration—what we’re going through now. Home prices aren’t decreasing, they’re just increasing at a slightly slower pace.
Don’t be afraid! It’s just deceleration, not depreciation. If you have any questions about this, don’t hesitate to call or email me. I’d love to hear from you.
