Home Prices Still Growing – Just at a More Normal Pace
If you’re feeling a bit muddy on what’s happening with home prices, that’s no surprise. Some people are still saying prices are falling, even though data proves otherwise. Part of that misconception is because people are getting their information from unreliable sources. But it’s also coming from some media coverage misrepresenting what the data really shows.
So, to keep things simple, here’s what you really need to know using real data you can trust.
Normal Home Price Seasonality Explained
In the housing market, there are predictable ebbs and flows that happen each year. It’s called seasonality. Spring is the peak homebuying season when the market is most active. That activity is typically still strong in the summer but begins to wane as the cooler months approach.
Home prices follow along with seasonality because prices appreciate most when something is in high demand. That’s why there’s a reliable long-term home price trend. The graph below uses data from Case-Shiller to show the typical percent change for monthly home price movement from 1973 through 2022 (not adjusted, so you can see the seasonality):
As the data shows, at the beginning of the year, home prices grow, but not as much as they do when entering the spring and summer markets. That’s because the market is less active in January and February since fewer people move in the cooler months. As the market transitions into the peak homebuying season in the spring, activity ramps up, and home prices go up a lot more in response. Then, as fall and winter approach, prices still grow, just at a slower pace as activity eases again.
This Year, Seasonality Has Returned
Now, let’s look at how this year compares to that long-term trend (see graph below):
Here’s the latest data for this year from that same source. Just like before, the dark bars are the long-standing trend. The green bars represent what’s happened this year. As you can see, the green bars are beginning to fall in line with what’s normal for the market. That’s a good thing because it’s more sustainable price growth than we’ve seen in recent years.
In a nutshell, nationally prices aren’t falling, it’s just that price growth is beginning to normalize. Moving forward, there’s a chance the media will misrepresent this slowing of home price growth as prices falling. So don’t believe everything you see in the headlines. The data included here gives you the context you need to really understand what’s happening. So, if you see something in the headlines that’s confusing, don’t just take it at face value. Ask a trusted real estate professional for more information.
Remember, it’s normal to see home price growth slow down as the year goes on. And that definitely doesn’t mean home prices are falling. They’re just rising at a more moderate pace.
In conclusion, as we delve into the intricate tapestry of Telluride's real estate market for October 2023, a nuanced picture emerges, painting distinct scenarios for single-family and attached homes.
For single-family luxury homes in Telluride, it's undoubtedly a Buyer's Market with a 6% Sales Ratio. The median sales price of $1,625,000 and a median of 87 days on the market present both challenges and opportunities for prospective buyers. Notably, the $1,500,000-$1,999,999 price band stands out as the most active, boasting a robust 33% sales ratio.
On the other hand, the attached luxury market in Telluride tells a different tale. With a 42% Sales Ratio, it's a Seller's Market, offering favorable conditions for those looking to sell their attached homes. The median sales price of $1,075,000 and a median of 75 days on the market underscore the demand for these properties, especially in the $600,000-$699,999 price band, where the sales ratio soars to an impressive 200%.
As we navigate the nuances of the Telluride real estate landscape, it's crucial to stay informed and make decisions based on the latest market trends. If you're considering buying or selling a home in Telluride, now may be the perfect time to connect with a seasoned real estate professional. Anne-Britt Ostlund, associated with Mountain Rose Realty, possesses the expertise and local knowledge to guide you through the intricacies of the Telluride real estate market.
In a real estate market where precision is paramount, having a knowledgeable and experienced real estate agent like Anne-Britt Ostlund by your side can make all the difference. Whether you're in search of Telluride homes for sale or eager to explore the homes for sale in Telluride, CO, Anne-Britt and the team at Mountain Rose Realty are ready to assist.
Home price appreciation is settling into a more predictable seasonal rhythm, and this normalization brings a sense of stability to the market. However, if you find yourself pondering the implications of these market dynamics on your local area, don't hesitate to reach out. For personalized insights and guidance tailored to your unique situation, connecting with a real estate professional is the key.
In your real estate journey, let Mountain Rose Realty and Anne-Britt Ostlund be your trusted partners. Unlock the doors to Telluride's captivating real estate opportunities, and let the experts guide you toward your homeownership dreams.