During the great recession and housing market crash we did see actual decreases in property values. People bought houses and ended up owing more on them than they could sell them for.
The value of my own home declined during the crash but we could have sold it for twice as much as we paid for it. Did we lose money? The house is now worth twice as much as it was worth in 2009.
It is kind of like looking at the statement for my retirement account. The dollar value today is less than what it was a year ago, but it is worth many times more than what I put into it. Another account is growing at about the same rate as it would if I had buried the money in the backyard. Yet I know for sure the money wouldn’t grow at all if I buried it in the backyard.
Today in some parts of the country the median home sale price is lower than it was in August. Most of the people who bought houses in August will not need to sell and if they did chances are they could get the same amount for their house as they paid for it last month, or maybe more.
Home values fluctuate but over the long run, prices go up. There are a few things that could cause home values to decline. When the number of available houses is higher than the demand for houses then the prices will decrease.
The idea of decreasing home values can be misleading. The idea of a “real estate recession” is confusing. The housing market isn’t like it was before the pandemic. Nothing is quite the same.
If you would like to know how much your house will sell for right now contact me.
If you are currently renting be skeptical of claims that renting is somehow better than owning. Paying rent isn’t throwing money away but a rental is never really home and it isn’t an investment.