Rebounding Home Prices: Positive Outlook Amidst Misleading Headlines

Lisa Mailhot  |  July 17, 2023


Rebounding Home Prices: Positive Outlook Amidst Misleading Headlines


If you've been keeping up with the news, you might feel uncertain about the current state of home prices and worry about what the future holds. The headlines tend to paint a needlessly negative picture. However, to gain a clearer understanding, we need to consider a year-over-year perspective, which reveals that home prices dropped due to an extraordinary peak year rather than a long-term trend.

To avoid an unfair comparison with that peak, it's crucial to analyze monthly data, which tells a much more positive story. While local markets still exhibit variations, the national data offers encouraging insights.

By examining the recent monthly reports from three sources, we can see that the most severe home price declines are already behind us and prices are appreciating on a national scale.


Analyzing the monthly view, the past year in the housing market can be divided into two phases. In the first half of 2022, home prices were rapidly increasing. However, starting in July, prices began to decline. By around August or September, the trend started to stabilize. Yet, the most recent data for early 2023 also shows that prices are once again on the rise.

The fact that all three reports indicate consecutive months of price increases is an encouraging sign for the housing market. This month-over-month data suggests a national shift is occurring, with home prices beginning to rise again.

Craig J. Lazzara, the Managing Director at S&P Dow Jones Indices, offers the following statement regarding trends in home prices:

“If I were trying to make a case that the decline in home prices that began in June 2022 had definitively ended in January 2023, April’s data would bolster my argument.” 

Experts attribute the resilience of home prices, despite expectations of a crash, to the insufficient number of available homes relative to the demand from potential buyers. Even with current mortgage rates, there is a greater demand for homes than there are homes available for sale.

Mark Fleming, the Chief Economist at First American, provides an explanation of how the imbalance between demand and supply creates upward pressure on prices:

“History has shown that higher rates may take the steam out of rising prices, but it doesn’t cause them to collapse entirely. This is especially true in today’s housing market, where the demand for homes continues to outpace supply, keeping the pressure on house prices."

Doug Duncan, the Senior Vice President, and Chief Economist at Fannie Mae, asserts that the growth in home prices is surpassing initial projections due to the significant level of demand in the market:

“. . . housing prices continue to show stronger growth than what was previously expected . . . Housing’s performance is a testimony to the strength of demographic-related demand . . .”

Here's How This Affects You:

  • Buyers: If you've held back on purchasing a home due to concerns about declining home values, the rebounding prices should bring you some relief. Moreover, it presents an opportunity to own a property that typically appreciates over time.
  • Sellers: If you've been hesitant to sell your house due to uncertainties surrounding changing home prices, it may be wise to collaborate with a real estate agent to list your property. The latest data suggests that the market is turning in your favor, so there's no need to wait any longer.

Bottom Line

If you postponed your moving plans due to concerns about falling home prices, the latest data indicates that the worst is already behind us and home prices are appreciating on a national level. Let's connect so that you can stay informed about the local home price trends in our area.

Recent Blog Posts

Stay up to date on the latest real estate trends.


Converted Churches, Barns, and Factories: Unconventional Home Conversions

Lisa Mailhot  |  November 30, 2023

Experience Unique Living: Converted Churches, Barns, and Factories Turned Homes. Discover the charm of unconventional conversions with history, character, and modern c… Read more


Unveiling the Hidden Gems of Orange County: 10 Intriguing Trivia Facts

Lisa Mailhot  |  November 28, 2023

Delve into the secrets of Orange County, California, with our blog featuring captivating trivia facts. Whether you're a potential buyer, seller, or a curious tourist, … Read more


Orange County Real Estate in 2023: Market Trends and Insights

Lisa Mailhot  |  November 27, 2023

Uncover 2023 Orange County Housing Market Trends: Delve into median sold prices, sales metrics, and market dynamics to understand if it's a buyer's or seller's market.… Read more


Last-Minute Gifts for the Home: Thoughtful Ideas for Stress-Free Holiday Giving

Lisa Mailhot  |  November 22, 2023

Stuck in a last-minute gift scramble? Discover seven low-stress, last-minute gift ideas that'll delight your loved ones and elevate their home experience. From cozy th… Read more


Unlocking Opportunities: Lower Mortgage Rejection Rates Point to a Brighter Real Estate Horizon

Lisa Mailhot  |  November 21, 2023

Explore the changing real estate landscape influenced by declining mortgage rejection rates. Discover the opportune moment for buying or selling your home while improv… Read more


Dealing with Problematic Neighbors When Selling Your Home

Lisa Mailhot  |  November 20, 2023

 Selling your home with challenging neighbors? Learn how to handle noisy, disrespectful, or problematic neighbors effectively. Follow these tips to ease the selling pr… Read more


Orange County Real Estate Trends: November 2023 Market Insights

Lisa Mailhot  |  November 16, 2023

Get the latest insights into the Orange County real estate market. Discover trends, notable closings, and the impact of the holiday season on inventory. Stay informed … Read more


FHFA Sets 2024 Multifamily Loan Purchase Caps: What Realtors Need to Know

Lisa Mailhot  |  November 15, 2023

Stay informed on FHFA's 2024 multifamily loan purchase caps, totaling $140 billion for Fannie Mae and Freddie Mac. Explore the impact on the multifamily market and its… Read more


Navigating Today's Housing Market: The Rise of 'Nepo-Homebuyers

Lisa Mailhot  |  November 14, 2023

Learn about the rise of alternative lenders, such as parents, as a solution to the affordability challenge in today's real estate market. Explore available options for… Read more

Let’s Talk

You’ve got questions and we can’t wait to answer them.