The housing market is in flux, and with it comes a dizzying flow of seemingly contradictory statistics. Since hitting a 10-year high last year when equity soared to $14 trillion, home prices leveled off in January, making it one of only three months since 2012 where prices haven’t increased on a month-over-month basis. In February, home prices decreased slightly but even so, the housing market remained valued higher than it had been in recent history. Currently, it’s valued at $24.3 trillion, higher even than the 2006 peak of $23.9 trillion.
David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, said, “Home prices continue to advance, with the national average rising faster than at any time in the last two-and-a-half years. With all 20 [major] cities seeing prices rise over the last year, questions about whether this is a normal housing market or if prices could be heading for a fall are natural.”
So while February alone looks rather dismal, it’s actually insignificant to the big picture.
The housing market is recovering, so don’t let small dips here and there dissuade you.
Image by Mark Moz