Home prices are flatlining
There are some terms we use when talking about what’s happening with home prices.
Some of these words sound a bit similar but mean different things.
To help clarify, these are some of the terms we use:
– Appreciation: This is when home prices increase
– Depreciation: This is when home prices decrease
– Deceleration: This is when home prices continue to appreciate but at a slower rate
Many houses gained value between 2005 and 2008, but since then they have been stagnant.
Most experts are forecasting ongoing appreciation, just at a decelerated pace. In other words, prices will keep climbing but not as fast as they have been in previous years.
None of them are suggesting that the prices of properties will fall.
The bottom line is that home prices are unlikely to decline. There is still a gap between the number of homes available for sale and the number of people looking to buy.
