Every now and then I take a look to see how home prices fared on a year over year basis. Today
I will be using the time frames from November 29 th of 2022 to January 29 th of 2023 (Sample A) vs November 29 th 2023 to January 29 th 2024 (sample B)… a 2 month look-back on a year over year basis. These sample boundaries were from Ave J to Ave. L and from 20 th street west to 65 th street west. Sample A had 58 sales and sample B had 54 sales. Sample A had an average sales price of $487,314.00 and sample B had an average sales price of $507,865.00, a $20,524.00 increase in sales price (on a year over year comparison). This equates to 4.2% increase in value on a year over year basis. Pretty decent I’d say especially in light of all the rate hikes from the Federal Reserve. Looking forward, if the Federal Reserve holds steady (or possibly lowering the federal funds rate) I see a bit of an increase over the 4.2%. Mainly because the mortgage rates have come down AND there is a pent-up demand on the home buying side. The economy is strong and the unemployment rate is still relatively low.
Is it a Good Time to Buy?
Yes, and there are several reasons, I’ll go over my top four 1. Home prices are still on the rise.
2. We are still in a housing shortage and this will continue the ‘seller’s’ market. 3. You will
start building equity now, as opposed to later. 4. If mortgage rates come down you can re-fi.
More households are being formed every year, and you’re going to have to live somewhere
anyway. Why not pay yourself instead of your landlord.
Fun Facts:
Important dates… Valentine’s Day is on February 14th (duh) which is a Wednesday, Mardi Gras is the 13th, Presidents’ Day will be Monday, February 19th and the Final NFL game of the season is Sunday February 11th… Check out the Word Search on the back!
Feel free to reach out to us for any of your real estate needs.
We wish all the Best to you and your family.
Sincerely,
Ron Hier
