Difference Between Home Price Deceleration and Home Depreciation

Difference Between Home Price Deceleration and Home Depreciation

When discussing the current status of property values, real estate professionals utilize a variety of phrases. And while some of those terms seem identical, they have completely different meanings. 


Appreciation occurs when the value of a house rises. When housing values fall, this is known as depreciation. This is known as deceleration when property values continue to increase at a slower rate. 


Where Have Home Prices Been in the Last Few Years? 


For starters, you’ve heard that home prices have risen dramatically in the last two years, although properties have been appreciating for much longer. It may surprise you that property prices have increased for 122 months. 


Over the last ten years, houses have constantly increased in value. However, as the home price rise has quickened after 2020, the increase has been more extreme. 


So, why have property prices risen so dramatically? It’s because there were more purchasers than available properties. Because demand was strong and supply was low, this mismatch pushed up property prices. 


Where Do Experts Think Home Prices Will Go? 


While this information is helpful, if you’re a buyer or seller in today’s market, you’re undoubtedly interested in knowing what will happen to house values. Will they continue to expand at the same rate, or will housing prices begin to fall? 


Experts predict further appreciation but at a slower rate. In other words, prices will continue to rise, but not at the same rate as they have been. Home price projections from seven industry leaders are shown in the graph below. No one is advocating for a decrease in costs. 




Price slowing, not devaluation, is expected, according to experts. This implies that housing prices will continue to climb but at a slower rate. Contact a reputable real estate agent to learn more about the current condition of property prices in your area and to discuss your purchasing and selling objectives.

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