(AmericanProsperity.com) – If you plan to sell your home in the near future, there’s a mixed bag of news for you. According to a Standard & Poor’s report on Tuesday, the home price index jumped 4.4% in March, which is up from 4.2% in February. While home prices are remaining stable during the COVID-19 pandemic, home sales dropped over 17% from the same time in 2019.
Homes may be holding their value as new construction rates were abysmal in April. According to the Commerce Department, home construction fell 30.2% last month to its lowest level since February 2015.
Appreciation represents the increase in home values over time. Real estate prices are cyclical, and homeowners shouldn't expect the property's value to increase drastically in the short-term. pic.twitter.com/ZgPuBMVWnV
— BBPALACE REALTORS (@BBPALACE1) May 27, 2020
There’s a real danger to real estate values. If unemployment remains high and the economy does not rebound quickly, it could forcibly lower house prices. That would be good for buyers, but could put some homeowners in a precarious situation.
During the Great Recession, some houses were worth less than what their homeowners owed on them. However, if you plan to stay in your house long-term, historical trends show your home should recover its value in the future — and that’s good news.
~Here’s to Your Prosperity!
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