Home Price Trends in the Southeast United States

Home Price Trends in the Southeast United States

Home prices are rising in the Southeastern United States, though not as quickly as before. According to data from the Federal Reserve Bank of St. Louis, the median home sales price in the Southeast was $463,000 in August 2023, a 2.8% increase from the previous year. This is slower growth compared to the 10.4% increase seen in August 2022.

It's important to note that the housing market can differ from one city to another within the Southeast. While some places might be seeing home prices drop, others are still experiencing steady increases. Savannah has seen a minor price adjustment in the Lowcountry market, down from a high of $330,000 to $320,000 in September.

A few things contribute to this slowdown in home price growth in the Southeast. One major factor is rising mortgage rates. The average interest rate on a 30-year fixed-rate mortgage has increased by over two percentage points since the start of the year, making borrowing money for a home more expensive.
 

Another factor is the decreased number of homes in the Southeast. This shortage of available homes is pushing prices higher, although the situation in the Southeast is less severe than in other parts of the country, like the Western United States.

In summary, the housing market in the Southeast is still in pretty good shape. Home prices are still increasing, but slower than before, thanks to rising mortgage rates and a limited supply of homes. We see houses in "move-in condition" still selling for the full price and in about ⅓ the time.

Understanding the Current Home Price Situation

Lately, there's been a lot of talk about the housing market, with some experts predicting a crash in home prices for 2023. This led to a wave of alarming headlines. However, it's essential to look beyond sensational news and check the facts when making important decisions about real estate.

Home Prices Have Been Resilient

Contrary to the alarming headlines, the data tells a different story. Home prices have shown impressive resilience, outperforming the dire predictions. Let's look at the facts:

This graph, based on data from three trusted sources, clearly shows that home prices bounced back after a slight dip on a national level. These dips, highlighted in red, were neither severe nor long-lasting. As Nicole Friedman, a reporter at the Wall Street Journal, pointed out, "Home prices aren't falling anymore. . . The quick recovery suggests that the housing market's downturn is becoming shorter and less severe than many experts expected."

In simple terms, the minor correction that happened is already behind us. The data shows that home prices are on the rise, not falling.

What's Next for Home Prices?

Most experts agree that home prices will continue to rise in the coming years but at a slower pace compared to recent years. This slower growth is positive, returning the market to more stable levels.

However, it's crucial to be cautious of some news sources that might exaggerate the slowdown and incorrectly suggest that prices are falling again. Such headlines can influence public opinion, as seen in the Consumer Confidence Survey by Fannie Mae.

Although the percentage of Americans expecting price drops has gradually decreased over the year, recent data shows a slight increase in this sentiment. This is surprising, given that the actual home price data indicates an upward trend. It shows that the media still has a significant impact on public opinion.

Don't Be Distracted by Negative Headlines

In summary, despite the media's tendency to paint a bleak picture, the data clearly shows that home prices are not falling anymore. Don't let sensational headlines deter you or delay your plans. Rely on the guidance of a trusted real estate professional (Team Yannett) who can provide accurate information about your specific area's market conditions.

Tips for Buyers and Sellers in the Southeast Housing Market

- Buyers: Be ready to act swiftly when you find a home you like, as the market is still competitive, and homes are selling quickly. Also, consider offering a competitive price to secure the property.

- Sellers: Price your home competitively to attract buyers. You may also want to consider updating your home to make it more appealing to potential buyers.

Remember, it's always a good idea to consult with a local real estate agent (TEAM YANNETT) to understand the housing market in your area better. We are always here to provide the most accurate and up-to-date information to help you make informed decisions. Please reach out to me at 912-844-9000 or Lauren Brantley at 912-355-5858