We are beginning to see reports that more housing inventory is coming to the market and that buyer demand may not be increasing at the same pace it did earlier this year. The result will be many headlines written to address the impact that these two situations will have on home values.
Many of these headline writers will confuse 鈥渟oftening home prices鈥?with 鈥渇alling home prices Ugo Amadi Camo Jersey ,鈥?but there is a major difference between the two.
The data will begin to show that home values are not appreciating at the same levels as they had over the last several years (softening prices). This does NOT mean that prices are depreciating (falling prices).
Here is an example: Over the last several years, national home values increased by more than 6% annually. If you had a home worth $300,000 at the beginning of the year, it would be worth $318 Phil Haynes Camo Jersey ,000 by year鈥檚 end. If the appreciation rate 鈥渇alls鈥?to 4%, that $300,000 house would be worth $312,000 at the end of next year 鈥?a $6 Gary Jennings Jr Camo Jersey ,000 difference.
The price of the home did not fall. It just didn鈥檛 increase at the level it had the previous year.
Appreciation rates are projected to end this year at approximately 5%, and then drop to somewhere between 4-5% next year. This drop in appreciation rate will cause home price increases to soften.
Again, this does not mean that home prices will depreciate, but instead that they will appreciate more slowly. Bottom Line Be careful when reading headlines that discuss home values. Some headline writers will be legitimately confused and will use the word falling in place of softening. Others will realize that the headline 鈥淗ome Prices are Falling!鈥?will get more clicks than 鈥淗ome Prices are Softening鈥?and will intentionally write the more compelling headline. Read the article. If the word depreciation is not mentioned Cody Barton Camo Jersey , home values are not falling.
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We encourage you to experience the unparalleled value of working with Vantage Realty Pros by simply reaching out to us with your real estate dreams in mind. We are here to serve you, in any way we can. Our mission is to continually elevate our client鈥檚 real estate experiences through selfless guidance and undeniable expertise. So, whether you鈥檙e a first-time home-buyer Marquise Blair Camo Jersey , a seller, or even a home renovator, Vantage Realty Pros will help you navigate the process to get the positive outcome you鈥檙e after. We absolutely love what we do and look forward to having the opportunity to meet with you to discuss your real estate needs. For More Info : Visit Here : Total Views: 43Word Count: 418See All articles From Author Forms and Prices of Hair Extensions
Posted On : Feb-01-2012 | seen (213) times | Article Word Count : 591 |
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