Real Estate Market Deceleration, Slow Appreciation, but not Depreciation

There’s no doubt that the real estate market is shifting. As we continue deeper into 2022 we’re continuing to learn how the real estate market is going to be impacted by rising inflation and our current administration. Early projections by many top economist predicted the impending doom of the real estate market, calling for a true recession. So far, this has not happened, or not yet? 

I monitor local and national real estate trends weekly to better guide my clients, but also to understand what’s happening around us as a whole. Across the nation real estate values have been impacted greatly in 2022, but not in the ways you may think. 

Through the 2nd and 3rd quarter of 2022 we watched real estate values decelerate dramatically. In prior years home values in our market appreciated nearly 20-30% per year as droves of out of staters moved to our area. This year, we’re anticipating appreciation to slow to a more manageable, and normal, rate of 4-5%. The most important take away from this is that homes are NOT DEPRECIATING. 

Consumers tend the read and believe the negative news far more frequently than anything positive. The issue with most of this news is that it’s usually based on fear and panic predictions, not facts and data. You can read some of my most recent analysis’ of our local market data HERE and HERE.

The data shows us that although the market has undoubtedly slowed, listing counts still haven't overtaken last years monthly counts. The number of active listings is the largest factor when trying to determine market health and stability. So far our market remains strong and is actually still seller controlled, but buyers are beginning to have more leverage and negotiation power. 

However, as our market continues to decelerate the data is proving that homes are still appreciating over the course of an entire year. For example, a $400,000 home in January of this year is worth $415,000 today at 5% growth per year. Ultimately, this means that if you’re waiting for the impending doom and market recession to buy a home you’re not doing yourself any favors. 

We don’t have a crystal ball and we have no idea what’s going to happen long term. But, every piece of data we have says owning a home is still one of the best investments for yourself and your family. If you have questions about this, or want to discuss real estate further I am always happy to speak about how I can help you. 980-250-2795

If you’re considering buying or a selling a home in the Waxhaw area and would like to learn more about the process, please don’t hesitate to call me at Briggs American Homes at (980) 250-2795. I would love to help you and your family with all of your real estate needs! 

Check out my latest client testimonial! “We are so fortunate to have worked with Matt Lawson! He has been an invaluable resource throughout the entire process of buying our home. Right from the start, we got a good feeling about him. He could relate to our needs and really helped us bring our options into focus, saving us valuable time and energy. He not only has years of experience as a realtor. He has worked as a home inspector, published numerous articles to help inform prospective buyers… I can’t say enough. We found the right realtor. And the right house!” L. Berger

Matt Lawson, MBA is the Owner and Broker in Charge of Briggs American Homes, a real estate team at REAL Broker, LLC. Matt lives and operates his business right here in Waxhaw, NC and is passionate about all things Real Estate.