Understanding the Terminology
Appreciation: when home prices increase.
Depreciation: when home prices decrease.
Deceleration: when home prices appreciate but at a slower pace.
Home prices soared over the past two years, but this has been happening for a while. Like for the past ten years!
Why did prices climb so high so fast?
There were more buyers than there were homes for sale. It’s the classic case of supply and demand. Demand was high and supply was low.
So will this continue to happen?
Currently, in Skagit County, we can see that home prices are no longer at a rapid increase pace but experts say prices will continue to grow just at a slower rate. The demand is still there so don’t expect prices to decline soon.
Bottom line
Deceleration, not depreciation.
Reach out to your trusted real estate professional for questions on this topic. If you don’t have someone you are currently working with, contact us today. We can help!
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