Home Price Deceleration Doesn’t Mean Home Price Depreciation
Home Price Deceleration Doesn’t Mean Home Price Depreciation
Abstract
Experts in the real estate industry use a number of terms when they talk about what’s happening with home prices. For starters, you’ve probably heard home prices have skyrocketed over the past two years, but homes were actually appreciating long before that. Since 2020, the increase has been more dramatic as home price growth accelerated. So why did home prices climb so much? It’�s because there were more buyers. That imbalance put upward pressure on home prices. The imbalance put downward pressure on house prices and supply was low. In other words. But it's not enough to make home prices decline. The graph below shows home prices will keep climbing, just not as fast as they have been.