How much have home prices gone down? - Sacramento Appraisal Blog | Real Estate Appraiser

Abstract

How much have home prices gone down? That's the big question right now, so let's talk about it. NOT EVERY LOCATION IS THE SAME: Home prices aren't doing the same thing everywhere. Here's an image from Lance Lambert of Fortune Magazine using data from the Black Knight Home Price Index. Most local price metrics are down less than 2% from last November, so some people think, "Prices are barely down. Why is everyone making such a big deal about this?" But we have to look at price change from the spring too. LAST YEAR vs MAY 2022: When looking at the image below, do you see how there isn't much change from one year ago? But there's been a giant change from May. As I said last week, prices have dipped three times faster than the normal rate this year. If we only focus on last year, prices drops look modest. The median price is down 1.6% compared to one year ago, but there's been a hefty price change to get here.