The S&P CoreLogic Case-Schiller Indices show that home prices increased 19.8% nationally, year over year for the month of August. While this rate makes August another consecutive, record-breaking month, it does indicated a deceleration in month over month rates.
So what does that mean for your home's value?
Well, it's important to understand that deceleration is not the same as decline. Home prices are still increasing, they just appear to be increasing at a lower rate. And keep in mind that 19.8% is a remarkable gain in value!
Inventory is still low in Knox County as well. The Mount Vernon News recently reported that the county has about 8 week's worth of listing inventory currently. Demand is still high, and we are still seeing competitive buying situations, especially with move-in-ready properties. So it is still a great time to consider selling a property in order to leverage the profit opportunity that this market offers homeowners.
It's difficult to project what will happen in coming months. If you're looking to purchase a home right now, I would really consider how long you plan to own that property. There is absolutely nothing indicating that this market is a bubble that's about to burst, but there also isn't anything indicating that these rates are sustainable. So if you're looking to purchase a home with a plan to stay for 3-5 years or more, your investment is likely going to be solid because home prices are still increasing.
On the other hand, I would caution buyers who (like myself) have used real estate in the past five years as a way to make quick cash; that might not be the best plan closing out 2021, as I'm not sure that the gains experienced this year will replicate themselves next year in the same way.
Until next time,
Key Realty - John Yoder Team
If you'd like to look at the data for yourself, visit: https://press.spglobal.com/2021-10-26-Annual-Home-Price-Gains-Remained-High-In-August-According-To-S-P-CoreLogic-Case-Shiller-Index
To read the article from the Mount Vernon News, visit: https://mountvernonnews.com/stories/610376665-knox-land-bank-to-sell-cooper-guest-house-on-north-main-in-mount-vernon