Is a home still a good investment?

Are home values ​​not rising as quickly as in previous years?

Some housing economists say prices haven’t accelerated much compared to last year.

“Home prices aren’t rising as fast as they used to,” said Daniel Hale, chief economist at realtor.com. Newsweek.

Home prices are still rising, according to realtor.com. The median home listing price has increased 1.1% since the beginning of the year. During the same period last year, the median listing price was up 7.9%.

The median sales price rose 5.2% in January to $402,343, the largest increase since September 2022, according to Redfin, another real estate platform.

Orphe Divounguy, senior economist at Zillow, said the housing market is active, with inventory surging 3% and listings increasing 6% while mortgage rates remain in the low 6% range.

“January typically sees a significant increase in new homes coming on the market compared to December, and this year was no exception,” Divongay said. newsweek. “However, despite this increase, January’s boost was relatively modest compared to pre-pandemic levels. Yet, home prices are still above year-ago levels in 47 of the 50 largest markets. ”

Rising mortgage rates are deterring buyers from entering the market, but borrowing costs are lower than they were a year ago.

“But buyers who are ready now have a chance to get their hands on some cash before the spring rush,” Divongai said. “Looking forward, population growth projections have been revised upwards, with inflation-adjusted real incomes increasing by 4.2%.” [year-on-year]- Expected to support housing demand, potentially putting pressure on prices. ”

According to the Zillow Home Value Index, the home value as of January 2024 is approximately $343,000. This is more than the previous year’s $332,500, an increase of approximately $10,000. In January 2022, the home value was nearly $308,000, and from 2022 to 2023, he suggests home values ​​increased by more than $24,000.

Asked if this move suggests whether it’s still a good time to invest in housing, a housing economist said: newsweek He said buying real estate is a personal decision that Americans need to think deeply about.

“Whether or not it’s a good time to buy a home depends on your personal circumstances and market conditions,” Divongai said. newsweek He suggested that buyers should consult with professionals such as loan officers and real estate agents.

“Ultimately, the decision needs to be consistent with financial goals, long-term planning and affordability,” he added.

For realtor.com’s Hale, the financial decision to buy or not can come down to how long you choose to live in the home.

“Even if house price growth slows, buying a home may be a better option if you plan to stay in your home long enough or if you expect rents to rise.” she said. Newsweek.

Disclaimer: The content provided in this article is for informational purposes only. Neither Newsweek nor the authors involved in the production of this article are licensed real estate agents. The information contained herein is not intended as real estate advice.

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