Media coverage about what’s happening with home prices can be confusing. A large part of that is due to the type of data being used and what they’re choosing to draw attention to. For home prices, there are two different methods used to compare home prices over different time periods: year-over-year (Y-O-Y) and month-over-month (M-O-M). Here's an explanation of each. 

Year-over-Year (Y-O-Y):

• This comparison measures the change in home prices from the same month or quarter in the previous year. For example, if you're comparing Y-O-Y home prices for April 2023, you would compare them to the home prices for April 2022.
• Y-O-Y comparisons focus on changes over a one-year period, providing a more comprehensive view of long-term trends. They are usually useful for evaluating annual growth rates and determining if the market is generally appreciating or depreciating.

Month-over-Month (M-O-M):

• This comparison measures the change in home prices from one month to the next. For instance, if you're comparing M-O-M home prices for April 2023, you would compare them to the home prices for March 2023.
• Meanwhile, M-O-M comparisons analyze changes within a single month, giving a more immediate snapshot of short-term movements and price fluctuations. They are often used to track immediate shifts in demand and supply, seasonal trends, or the impact of specific events on the housing market.

The key difference between Y-O-Y and M-O-M comparisons lies in the time frame being assessed. Both approaches have their own merits and serve different purposes depending on the specific analysis required.

Why Is This Distinction So Important Right Now? 

We’re about to enter a few months when home prices could possibly be lower than they were the same month last year. April, May, and June of 2022 were three of the best months for home prices in the history of the American housing market. Those same months this year might not measure up. That means, the Y-O-Y comparison will probably show values are depreciating. The numbers for April seem to suggest that’s what we’ll see in the months ahead (see graph below):

That’ll generate troubling headlines that say home values are falling. That’ll be accurate on a Y-O-Y basis. And, those headlines will lead many consumers to believe that home values are currently cascading downward.

However, on a closer look at M-O-M home prices, we can see prices have actually been appreciating for the last several months. Those M-O-M numbers more accurately reflect what’s truly happening with home values: after several months of depreciation, it appears we’ve hit bottom and are bouncing back.

Here’s an example of M-O-M home price movements for the last 16 months from the CoreLogic Home Price Insights report (see graph below):

Why Does This Matter to You?

So, if you’re hearing negative headlines about home prices, remember they may not be painting the full picture. For the next few months, we’ll be comparing prices to last year’s record peak, and that may make the Y-O-Y comparison feel more negative. But, if we look at the more immediate, M-O-M trends, we can see home prices are actually on the way back up.

There’s an advantage to buying a home now. You’ll buy at a discount from last year’s price and before prices start to pick up even more momentum. It’s called “buying at the bottom,” and that’s a good thing.

Bottom Line

If you have questions about what’s happening with home prices, or if you’re ready to buy before prices climb higher, connect with a local real estate agent.

Unveiling the San Antonio, TX Real Estate Market: Are House Prices on the Rise or Decline? Exploring the Insights with Grell Realty Group and The Grell Team

The San Antonio, Texas real estate market has been the center of attention for homebuyers and investors seeking to capitalize on its growth potential. One common question that arises is whether house prices in San Antonio are trending upwards or heading towards a decline. In this in-depth blog post, we will delve into the factors influencing the San Antonio housing market, analyze the current trends, and provide insights from Grell Realty Group and The Grell Team, trusted experts in the field. Let's explore the dynamics of the San Antonio real estate market and gain a clearer understanding of the direction house prices are taking.

1. The San Antonio Real Estate Market Overview:
San Antonio is a thriving city with a strong economy, diverse neighborhoods, and a vibrant real estate market. Understanding the market's current state is crucial when analyzing house price trends.

2. Factors Influencing House Prices in San Antonio:
Several key factors impact house prices in San Antonio. It's important to consider these factors to assess whether prices are more likely to rise or decline:

a. Supply and Demand: The balance between housing supply and buyer demand plays a significant role in determining house prices. When demand exceeds supply, prices tend to rise, whereas an oversupply may lead to price corrections.

b. Economic Factors: Local economic conditions, including job growth, wage trends, and overall economic stability, have a direct impact on the real estate market. A robust economy generally drives demand and supports house price appreciation.

c. Interest Rates: Mortgage interest rates significantly influence the affordability of homes. Lower interest rates often stimulate buyer demand, potentially leading to price increases. Conversely, rising rates may temper buyer enthusiasm and potentially impact prices.

d. Market Competition: The level of competition among buyers can affect house prices. Multiple offers and bidding wars can drive prices upwards, while reduced competition may exert downward pressure on prices.

3. Current House Price Trends in San Antonio:
To determine whether house prices in San Antonio are rising or declining, we must analyze the latest data and market trends. While real estate markets can fluctuate, recent indicators point to an upward trajectory in house prices.

a. Appreciation Rates: Over the past few years, San Antonio has experienced consistent house price appreciation. The market has demonstrated steady growth, with rising prices reflecting the high demand for properties.

b. Limited Inventory: San Antonio has witnessed a limited housing inventory, which has intensified competition among buyers. This imbalance between supply and demand contributes to upward pressure on prices.

c. Neighborhood Dynamics: It's crucial to analyze house price trends at a neighborhood level as each area may experience variations in appreciation rates. Certain neighborhoods may exhibit stronger price growth due to unique factors such as proximity to amenities, schools, or new developments.

4. Insights from Grell Realty Group and The Grell Team:
Partnering with experienced realtors like Grell Realty Group and The Grell Team is invaluable when assessing house price trends. They possess extensive knowledge of the San Antonio market, providing valuable insights into local dynamics, neighborhood-specific trends, and emerging opportunities.

5. Tailored Solutions and Market Expertise:
Grell Realty Group and The Grell Team offer personalized solutions to meet your real estate goals in the ever-evolving San Antonio market. They utilize their in-depth market expertise, extensive network, and data-driven analysis to guide you in making informed decisions regarding house prices and investment opportunities.

6. SEO and Google Keywords:
To ensure this valuable information reaches a wider audience, implementing SEO strategies is essential. By incorporating relevant Google keywords throughout the blog post, such as "San Antonio house prices," "Grell Realty Group," and "real estate market trends," we optimize the chances of the content being discovered by those seeking information on these topics.

Conclusion:
While the San Antonio, TX real estate market is dynamic, recent trends indicate a positive trajectory for house prices. Factors such as supply and demand dynamics, economic stability, and limited inventory contribute to this upward trend. By leveraging the expertise of Grell Realty Group and The Grell Team, you can gain a comprehensive understanding of the market, make informed decisions, and navigate the San Antonio real estate landscape with confidence.