As we moved into 2023, there was widespread speculation about a potential recession that could trigger a downturn in the housing market. Some media outlets even projected a significant drop in home prices, ranging from 10% to 20%, which might have left you feeling hesitant about purchasing a home.
However, the reality defied these forecasts: home prices experienced greater-than-average increases. Brian D. Luke, Head of Commodities at S&P Dow Jones Indices, elaborates:
"Reflecting on the past year, 2023 has surpassed the typical annual home price gains observed over the last 35 years."
To contextualize last year's growth, the graph below utilizes data from Freddie Mac illustrating annual changes in home prices dating back to 1980. The dotted line represents the long-term average for appreciation.(excerpt from KCM.com)
The key insight? Home prices tend to ascend over time.
As a real estate broker in Anacortes, WA, I've witnessed firsthand the resilience of our local market. Despite broader economic concerns, our region has consistently demonstrated stability and growth in real estate values. This trend is not merely confined to our area; nationwide, real estate has proven to be a reliable investment vehicle over the years.
An article from Forbes underscores this point:
"The U.S. real estate market has demonstrated a consistent pattern of appreciating in value over the years."
Indeed, since 1980, the sole instance of home prices declining was during the housing market crash (highlighted in red in the graph above). Fortunately, the current market differs significantly from that of 2008. Primarily, there's a shortage of available homes to meet the existing demand from buyers. Additionally, homeowners possess substantial equity, placing them in a far more secure position compared to the past. Consequently, there's no looming threat of a foreclosure wave triggering price drops. (excerpt from KCM.com)
As we enter the third month of 2024, the real estate landscape in Anacortes is showing promising signs of activity. In the first two weeks of March alone, we witnessed a notable surge with 15 new listings (including residential and condo properties) in Anacortes (NWMLS Area 815), compared to just 6 new listings during the same period in February. Furthermore, there were 11 properties placed under contract within the first two weeks of March, contrasting sharply with the mere 2 properties under contract during the initial weeks of February.
These statistics underscore the dynamic nature of the Anacortes housing market and suggest a growing level of interest among both buyers and sellers. With the market showing such positive momentum, now could be an opportune time to explore your options in Anacortes real estate. Whether you're considering buying, selling, or investing, I'm here to help navigate the process with confidence and success.
