Difference Between Market Deceleration and Price Depreciation in Real Estate

Difference Between Market Deceleration and Price Depreciation in Real Estate

When discussing the situation of property values, real estate industry experts utilize a variety of phrases. And while some of those words share a similar sound, they have distinct meanings. Here’s a look at a few words you might hear to help explain what’s happening with home prices and where experts predict they’re going: 


  • The cost of a property appreciates when it sells. 
  • When housing values drop, this is called depreciation. 
  • When home price growth slows down, it is known as a deceleration. 


Where Home Prices Were in the Last Few Years 


First, despite what you may have heard, property values have been rising for far longer than the previous two years. 


Where Experts Predict Home Prices Will Head 


Although this background information is helpful, if you’re a buyer or seller in the current market, you want to know what the future holds for property values. Will they maintain that rising trajectory or will housing prices decline? 


Experts anticipate further appreciation but at a slower rate. In other words, prices will continue to rise, but not as quickly. 


Additionally, despite a little increase in housing supply, there is still a discrepancy between the number of homes for sale and the number of potential purchasers, which prevents home prices from falling. 


Most economists and real estate professionals believe home prices will continue to rise. Home prices and expectations are still high since home values are at record-high levels, and most experts predict further price increases this year and in the future.




Instead of a price decline, experts predict a slowdown. Therefore, while at a reduced rate, property prices will continue to climb. Get in touch with a dependable real estate agent to discuss your purchasing and selling objectives and to learn more about the condition of the housing market in your neighborhood.

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