Price Appreciation vs. Price Acceleration May 6, 2022 by Jennifer Nelson https://youtu.be/kT8krtSIcI0Price Appreciation vs. Price Acceleration: What are they and how do they affect you? Hey everyone. This is Jennifer Nelson with RE/MAX Properties coming to you today with the market update a little bit differently here, price, appreciation, price, acceleration. What are they, how do they affect you? Let’s have a brief discussion. And let me unpack those terms for you. How did we get to the prices where we’re at right now? Let me tell you that. According to Keeping Current Matters, the median sales price of existing single-family homes rose in 99% of the 183 measured markets in the third quarter with double-digit pricing gains in 78% of those markets. Wow. What does that mean? If you know anything about the housing market, you know, that prices are continuing to skyrocket. They are continuing to go up, the price appreciation has accelerated every single month this year in 2021. So in January, we started at 10% appreciation, which is still about 5% higher, the normal in Colorado Springs. And by August of 2021, we were 18.1% appreciation month, year, over year. It’s gotten faster and faster every single month. It’s like a train that just keeps barreling through and speeding up. But the price acceleration appears to have peaked. Meaning the rate at which the home prices are accelerating has peaked. What’s the difference between appreciation and acceleration? Price appreciation has not peaked at all because we are still seeing prices rise, but now they will be rising at a slower pace than currently. So one month you might see 18% acceleration, and maybe the next month, 10%. That doesn’t mean that the prices are going down. That just means that the price of that market is going slower. It’s going up slower. That doesn’t mean the pricing is going down. That just means that the rate at which the homes are accelerating in their price is going slower. According to the Adam research, 39.5 % of homes with a mortgage in the U.S. are considered to be equity rich. What does that mean? That means that at least 50% in equity. Wow, that is so different than we were even 15 years ago. Everybody is getting equity at alarming rates. The byproduct though, of continually rising home prices, the byproduct is rising equity. My question to you today, though, folks is, do you know the current value of your home? I’m not talking about what it was two months ago, because it’s different now. As you can see from January at 10% to already at August at 18.1% appreciation, month to month, your home price is going to be different. Do you want to know what that is? Let me help you find that out. Let’s look at your current situation and see if now is the time for you to be doing anything. Maybe you want to tap into some of that equity and do some updates. Maybe you want to do a backyard, a kitchen, maybe some remodeling in your house, maybe some painting and a roof; who knows what in the world you could do. But you can sit back and kind of smile at the situation because if you are a homeowner right now, you are sitting on a goldmine, equity in the home of where you live. So my question again is, do you know the current value? Not what it was two months ago, but what is it today? Reach out to me. 719-648-4539 or Jennifer@SellingColoradoSpringsHouses.com. Let’s talk today and see how I can best help you in your situation. Have a great day.