{"id":2748,"date":"2022-06-16T12:40:14","date_gmt":"2022-06-16T12:40:14","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=2748"},"modified":"2022-06-16T12:40:14","modified_gmt":"2022-06-16T12:40:14","slug":"home-price-deceleration-doesnt-mean-home-price-depreciation","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/home-price-deceleration-doesnt-mean-home-price-depreciation\/","title":{"rendered":"Home Price Deceleration Doesn\u2019t Mean Home Price Depreciation"},"content":{"rendered":"<div id=\"attachment_2749\" style=\"width: 760px\" class=\"wp-caption aligncenter\"><img aria-describedby=\"caption-attachment-2749\" decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-2749\" src=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2022\/06\/20220616-KCM-Share.jpeg\" alt=\"\" width=\"750\" height=\"410\" srcset=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2022\/06\/20220616-KCM-Share.jpeg 750w, https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2022\/06\/20220616-KCM-Share-300x164.jpeg 300w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><p id=\"caption-attachment-2749\" class=\"wp-caption-text\">Home Price Deceleration Doesn\u2019t Mean Home Price Depreciation<\/p><\/div>\n<p>Experts in the real estate industry use a number of terms when they talk about what\u2019s happening with home prices. And some of those words sound a bit similar but mean very different things. To help clarify what\u2019s happening with <a title=\"home prices\" href=\"https:\/\/www.mykcm.com\/2022\/05\/24\/sellers-have-an-opportunity-with-todays-home-prices\/\">home prices<\/a> and where experts say they\u2019re going, here\u2019s a look at a few terms you may hear:<\/p>\n<ul>\n<li><strong>Appreciation<\/strong> is when home prices <em>increase<\/em>.<\/li>\n<li><strong>Depreciation<\/strong> is when home prices <em>decrease<\/em>.<\/li>\n<li><strong>Deceleration<\/strong> is when home prices continue to <em>appreciate<\/em>, but at a <em>slower pace<\/em>.<\/li>\n<\/ul>\n<h4><strong>Where Home Prices Have Been in Recent Years<\/strong><\/h4>\n<p>For starters, you\u2019ve probably heard home prices have skyrocketed over the past two years, but homes were actually appreciating long before that. You might be surprised to learn that home prices have climbed for <a title=\"122\" href=\"https:\/\/www.fhfa.gov\/DataTools\/Downloads\/Pages\/House-Price-Index-Datasets.aspx#qpo\" target=\"_blank\" rel=\"noopener noreferrer\">122<\/a> consecutive months <em>(see graph below)<\/em>:<\/p>\n<div id=\"attachment_2750\" style=\"width: 1010px\" class=\"wp-caption aligncenter\"><img aria-describedby=\"caption-attachment-2750\" decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-2750\" src=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2022\/06\/kcm-infographic-1655381723.png\" alt=\"Graph\" width=\"1000\" height=\"870\" srcset=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2022\/06\/kcm-infographic-1655381723.png 1000w, https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2022\/06\/kcm-infographic-1655381723-300x261.png 300w, https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2022\/06\/kcm-infographic-1655381723-768x668.png 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><p id=\"caption-attachment-2750\" class=\"wp-caption-text\">Home Prices Have Appreciated Since 2012<\/p><\/div>\n<p>As the graph shows, houses have gained value consistently over the past 10 consecutive years. But since 2020, the increase has been <a title=\"more dramatic\" href=\"https:\/\/www.fhfa.gov\/Media\/PublicAffairs\/Pages\/US-House-Prices-Rise-18pt7-Percent-over-the-Last-Year-Up-4pt6-Percent-from-the-Fourth-Quarter.aspx\" target=\"_blank\" rel=\"noopener noreferrer\">more dramatic<\/a> as home price growth accelerated.<\/p>\n<p>So why did home prices climb so much? It\u2019s because there were more buyers than there were homes for sale. That imbalance put upward pressure on home prices because demand was high and supply was low.<\/p>\n<h4><strong>Where Experts Say Home Prices Are Going<\/strong><\/h4>\n<p>While this is helpful context, if you\u2019re a buyer or seller in today\u2019s market, you probably want to know what\u2019s going to happen with home prices moving forward. Will they continue that same growth path or will home prices fall?<\/p>\n<p>Experts are <a title=\"forecasting\" href=\"https:\/\/www.mykcm.com\/2022\/05\/31\/what-does-the-rest-of-the-year-hold-for-the-housing-market\/\">forecasting<\/a> ongoing appreciation, just at a decelerated pace. In other words, prices will keep climbing, just not as fast as they have been. The graph below shows home price forecasts from seven industry leaders. <strong>None are calling for prices to fall <\/strong><em>(see graph below)<\/em>:<\/p>\n<div id=\"attachment_2751\" style=\"width: 1010px\" class=\"wp-caption aligncenter\"><img aria-describedby=\"caption-attachment-2751\" decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-2751\" src=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2022\/06\/kcm-infographic-1655381702.png\" alt=\"Graph\" width=\"1000\" height=\"870\" srcset=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2022\/06\/kcm-infographic-1655381702.png 1000w, https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2022\/06\/kcm-infographic-1655381702-300x261.png 300w, https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2022\/06\/kcm-infographic-1655381702-768x668.png 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><p id=\"caption-attachment-2751\" class=\"wp-caption-text\">Home Price Forecasts for 2022<\/p><\/div>\n<p>Mark Fleming, Chief Economist at <em>First American,<\/em> <a title=\"identifies\" href=\"https:\/\/blog.firstam.com\/economics\/the-housing-market-is-slowing-by-design-but-dont-expect-a-bust\" target=\"_blank\" rel=\"noopener noreferrer\">identifies<\/a> a key reason why home prices won\u2019t depreciate or drop:<\/p>\n<blockquote><p><strong><em>\u201c<\/em><\/strong><em>In today\u2019s housing market, demand for homes continues to outpace supply, which is keeping the pressure on house prices,<strong> so don\u2019t expect house prices to decline.\u201d<\/strong><\/em><\/p><\/blockquote>\n<p>And although <a title=\"housing supply\" href=\"https:\/\/www.mykcm.com\/2022\/05\/11\/are-there-more-homes-coming-to-the-market\/\">housing supply<\/a> is starting to tick up, it\u2019s not enough to make home prices decline because there\u2019s still a gap between the number of homes available for sale and the volume of buyers looking to make a purchase.<\/p>\n<p>Terry Loebs, Founder of the research firm <em>Pulsenomics<\/em>, notes that most real estate experts and economists anticipate home prices will continue rising. As he <a title=\"puts it\" href=\"https:\/\/www.forbes.com\/sites\/brendarichardson\/2022\/06\/07\/rising-rates-and-buyer-urgency-keep-home-price-gains-above-20-in-april\/?sh=c5446d229ec7\" target=\"_blank\" rel=\"noopener noreferrer\">puts it<\/a>:<\/p>\n<blockquote><p><em>\u201cWith home values at record-high levels and<strong> a<\/strong> <strong>vast majority of experts projecting additional price increases this year and beyond, home prices and expectations remain buoyant.\u201d<\/strong><\/em><\/p><\/blockquote>\n<h3><strong>Bottom Line<\/strong><\/h3>\n<p>Experts forecast price deceleration, not depreciation. That means home prices will continue to rise, just at a slower pace. Let\u2019s connect so you can get the full picture of what\u2019s happening with home prices in our local market and to discuss your buying and selling goals.<\/p>\n<p><strong>Contact us:<\/strong><br \/>\nPHP Houses<br \/>\n142 W Lakeview Ave<br \/>\nUnit 1030<br \/>\nLake Mary, FL 32746<br \/>\nPh:\u00a0<span id=\"gc-number-1\" class=\"gc-cs-link\" title=\"Call with Google Voice\">(407) 519-0719<\/span><br \/>\nFax:\u00a0<span id=\"gc-number-2\" class=\"gc-cs-link\" title=\"Call with Google Voice\">(407) 205-1951<\/span><br \/>\nemail:\u00a0info@phphouses.com<\/p>\n<p><strong>Let\u2019s Connect:<\/strong><br \/>\n<a href=\"https:\/\/www.facebook.com\/WeBuyHousesCentralFlorida\/\">Facebook<\/a><br \/>\n<a href=\"https:\/\/www.linkedin.com\/in\/walter-diloreto-25403710\/\">Linkedin<\/a><br \/>\n<a href=\"https:\/\/twitter.com\/WalterDiLoreto\">Twitter<\/a><br \/>\n<a href=\"https:\/\/www.instagram.com\/wdiloreto\/\">Instagram<\/a><\/p>\n<h5><em>The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. The author does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. The author will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.<\/em><\/h5>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>To help clarify what\u2019s happening with home prices and where experts say they\u2019re going, here\u2019s a look at a few terms you may hear. <a class=\"continue\" href=\"https:\/\/phphouses.com\/blog\/home-price-deceleration-doesnt-mean-home-price-depreciation\/\">Finish Reading<span> Home Price Deceleration Doesn\u2019t Mean Home Price Depreciation<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[15,18,329,183,27,91,510,398,511,158,52,9,49,159,397,42,63,437,438,20,48,47,19,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/2748"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=2748"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/2748\/revisions"}],"predecessor-version":[{"id":2752,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/2748\/revisions\/2752"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=2748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=2748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=2748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}