Are Home Prices Going Up or Down? That Depends…

Media coverage about home prices can be confusing, often due to the type of data being used and the focus of attention.

Two methods are used to compare home prices over different time periods: Year-over-Year (Y-O-Y) and Month-over-Month (M-O-M).

Year-over-Year (Y-O-Y):

  • Compares home prices from the same month or quarter in the previous year.

  • Useful for evaluating annual growth rates and determining long-term trends.

Month-over-Month (M-O-M):

  • Measures changes in home prices from one month to the next.

  • Provides immediate snapshots of short-term movements, seasonal trends, or specific events' impact.

Why Is This Distinction Important Right Now?

  • Home prices in the coming months may be lower than the same months last year (April, May, June 2022 were exceptional).

  • Y-O-Y comparisons might indicate depreciating values, potentially leading to troubling headlines.


However, analyzing M-O-M home prices reveals prices have been appreciating in recent months, indicating a bounce back after depreciation.


Why Does This Matter to You?

  • Negative headlines about home prices may not tell the full story.

  • Y-O-Y comparisons to record peaks from last year may appear negative, but M-O-M trends show home prices are on the rise.


🏷️ Buying a home now offers an advantage—purchasing at a discount compared to last year's prices and before further increases.


Bottom Line

📈 If you have questions about home prices or are considering buying before prices climb higher, let's connect!

Read the full article here: https://www.mykcm.com/blog/are-home-prices-going-up-or-down-that-depends