DEPRECIATION VS. DECELERATION, WHAT’S THE DIFFERENCE?
Depreciation versus Deceleration in the housing market, what is the difference?
As a homeowner looking to sell or a buyer wanting to purchase, it is important to understand these two different concepts and how they relate to today’s housing market. First, let’s talk about Depreciation. This is the gradual decrease in the value of property over time. Usually, this is due to aging, wear and tear, and changes in the surrounding neighborhood bringing the home value down. It can most often occur due to a softening of home prices, due to market forces, such as increasing interest rates or excess inventory-much like we see with Deceleration. Depreciation primarily affects an individual’s property, whereas Deceleration in the housing market refers to a slowdown in the overall growth of property prices or a decline in demand for homes in the broader market. Typically, we see this with external factors such as economic downturns or higher mortgage rates. Deceleration affects the housing market as a whole and impacts both buyers and sellers.
With today’s current market conditions of higher mortgage rates affecting affordability, we are seeing deceleration in the market. This means home prices are continuing to increase but at a much slower rate than in the last few years. Please reach out to my team to see what programs you may qualify for. Soon you will be on your way to homeownership. If you are a homeowner thinking of listing your property, please reach out to go over all the latest housing data to put you in the best position to sell.
Whether you want to sell your existing home, buy your first home, upsize, downsize, purchase a vacation home, or just talk about options, a real estate professional is your best source for information based on current trends in our area. If you're interested in learning more about the 2023 real estate forecast, don't hesitate to reach out - we're happy to help!