The Worst Home Price Declines Are Behind Us

If you’re following the news today, you may feel a bit unsure about what’s happening with home prices and fear whether or not the worst is yet to come. That’s because today’s headlines are painting an unnecessarily negative picture. Contrary to those headlines, home prices aren’t in a freefall. The latest data tells a very different and much more positive story. Local home price trends still vary by market, but here’s what the national data tells us. If we take a year-over-year view, home prices stayed positive – they just appreciated more slowly than they did at the peak of the pandemic. To get a more detailed picture of some of the trends in the market, we need to look at monthly data.  The monthly graphs below use recent reports from three sources to show that the worst home price declines are already behind us, and prices are on their way back up nationally. The story this more detailed monthly view tells us is that the last year has been a tale of two halves in the housing market. In the first half of 2022, home prices were climbing, and they peaked in June. Then, in July, home prices started to decline (shown in red in the graphs above). And by roughly August or September, the trend began to stabilize. As we look at the most recent data for the early part of 2023, these graphs also show a recent rebound in momentum with prices ticking back up. Monthly changes in home prices are gaining steam as we move into the busier spring season.  While one to two months doesn’t make a trend, the fact that all three reports show prices have stabilized is an encouraging sign for the housing market. The month-over-month data conveys a clear, but early, consensus that a national shift is taking place today. In essence, home prices are starting to tick back up. Andy Walden, Vice President of Enterprise Research at Black Knight, says this about home price trends:  “Just five months ago, prices were declining on a seasonally adjusted month-over-month basis in 92% of all major U.S. markets. Fast forward to March, and the situation has done a literal 180, with prices now rising in 92% of markets from February.” Selma Hepp, Chief Economist at CoreLogic, explains the limited supply of homes available for sale is contributing to this positive turn: “ . . . prices in many large metros appeared to have turned the corner, with the U.S. recording a second month of consecutive monthly gains. . . . The monthly rebound in home prices underscores the lack of inventory in this housing cycle.”  Here’s What This Means for You  Sellers: If you’ve been holding off on selling because you’re worried about what was happening with home prices and how it would impact the value of your home, it may be time to jump back in and partner with an agent to list your house. You don’t have to put your needs on hold any longer because the latest data shows a turn in your favor.  Buyers: If you’ve been waiting to buy because you didn’t want to purchase something that would decrease in value, you now have the peace of mind things are looking up. Buying now lets you make your move before home prices climb more and gives you the chance to own an asset that typically grows in value over time.  Bottom Line If you put off your plans to move because you were worried about home prices falling, data shows the worst is already behind us and prices are actually rising nationally. Partner with a local real estate professional so you have an expert to explain what’s happening with home prices in your area.

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San Antonio will pay up to $25K for improvements, repairs to homeowners with aging homes for ‘Rehabarama’

Projects can include foundation work, siding, roofing, painting and more The city of San Antonio is looking to help residents who own older homes with free repairs and updates as part of the Rehabarama program. Homeowners can receive up to $25,000 toward a number of improvements for homes built prior to 1960. Rehabarama hopes to preserve historic and aging housing stock to allow for aging in place and generational wealth, according to the city website. Projects can include partial home rehabilitation or projects that address property maintenance code issues. Qualifying repair work and maintenance projects for Rehabarama include: Building envelope (siding, soffit, fascia, roof penetrations, skirting)Structural systems (foundation, stabilization, reinforcement of structural elements, masonry)Non-compliance with property maintenance code issuesWeatherization and comfort (wood window repair, windows screens, door repair, insulation)Longevity (scraping, caulking, painting, flashing, gutter repair)Safety (porch repair and decking, accessibility) To apply, homeowners can visit the Rehabarama website or call 210-207-3327 to request an application by mail or email. In order to be eligible for the program, the home must be constructed prior to 1960, and the income level for the household must be at 80% of the Area Median Income (AMI) or below. Households with a 30% AMI or lower will be prioritized. Current AMI limits for San Antonio, according to the United States Department of Housing and Urban Development are: AMI %    1 Person    2 People    3 People    4 People    5 People    6 People    7 People    8 People30%    $ 17,400    $ 19,900    $ 22,400    $ 24,850    $ 26,850    $ 28,850    $ 30,580    $ 32,85050%    $ 29,050    $ 33,200    $ 37,350    $ 41,450    $ 44,800    $ 48,100    $ 51,400    $ 54,75060%    $ 34,860    $ 39,840    $ 44,820    $ 49,740    $ 53,760    $ 57,720    $ 61,680    $ 65,70080%    $ 46,450    $ 53,050    $ 59,700    $ 66,300    $ 71,650    $ 76,950    $ 82,250    $ 87,550 Funding is available for up to 30 homes annually. The assistance, which will not exceed $25,000 per home, is provided in the form of a one-time award that will be given from the Office of Historic Preservation directly to contractors working on the home. No reimbursement is required as long as the current owner or an heir continues to reside in the property. If a home is vacated or leased during the term of the loan, the outstanding balance is due immediately and payable in full, according to the program guidelines. Participating property owners must agree to remain in the property or preserve affordability based on the award amount: Less than $5,000 - 1 year$5,001 - $10,000 - 2 years$10,001 - $15,000 - 3 years$15,001 - $20,000 - 4 years$20,001 - $25,000 - 5 yearsPriority for this Rehabarama will be given to homes in Districts 1, 2, 3 and 5. Rehabarama is a single-day event, held bi-annually, that provides needed repairs and maintenance work to older homes. Video from a past Rehabarama can be viewed below: Beyond preserving aging housing stock, another goal of Rehabarama is to integrate trades education and learning opportunities into every project, city officials said in a press release. The City is seeking to hire contractors that would be willing to host an apprentice at no cost. Interested contractors can call 210-207-4680 or visit the Rehabarama website to submit the Contractor Interest Form. Participating contractors also serve as sponsors by providing their services at a reduced rate. In return, contractors receive recognition on all event collateral as well as listing on the Rehabber Club website which showcases contractors that are experienced in the preservation trades, according to the program’s website.   This article orginally appeared on KSAT Local News

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