Home Value Appreciation Stops Falling, Begins to Stabilize

The percentage of home price appreciation on a year-over-yearbasis has decreased each month for over a year. The question washow far annual appreciation would fall. It seems we may now havethe answer.

In a recent post on the National Association ofRealtors’ Economists’ OutlookBlog, it was revealed that Realtors are starting to sensethat home values are beginning to stabilize and that we may seeappreciation beginning to accelerate again:

“About 3,000 REALTORS® who responded toNAR’s February 2019 REALTORS Confidence Index Survey had moreoptimistic— although modest— home price growthexpectations over the next 12 months. Respondents expect homeprices to typically increase by 1.9 percent nationally, up from 1.4percent in the January survey.”

The thinking that home appreciation has bottomed-out was alsoconfirmed in two additional housing reports recently released:

CoreLogic Home PriceIndex – The analystsat CoreLogic increased their projection for homeappreciation for the next twelve months to 4.7% as compared to the4.6% they projected in their previous report.

The Home Price ExpectationSurvey – In the 2019 first quarter survey, thenationwide panel of over one hundred economists, real estateexperts, and investment & market strategists increased theirprojection for home value growth in 2019 to 4.3% compared to the3.8% increase they had projected in the fourth quarter of 2018.

Bottom Line

Agents working the business every day, one of the premier datacompanies in the real estate space, and one hundred housing expertsall agree: home price appreciation has ended its decline and looksto be stabilizing… and may even accelerate.