How to Price Your Home in Today's Market:

If you've been keeping up with the housing market, you've probably noticed that home prices have been on an upward trajectory over the past few years. This may leave you wondering: How much is my home really worth in today’s market? Understanding this is very important if you’re considering selling and want to make the most of your property’s value. Let’s break it down together to help you navigate how to price your home effectively.

The Rapid Rise of Home Prices in the Past 5 Years

We have been seeing a trend of home prices rising annually 3-5%, but if you have been paying attention to the housing market the last few years have not been matching the trends. From 2021 to 2022, home prices have been increasing by double digits, some reaching as much as 20%. So you might be wondering what caused this spike? A major factor of this is the influx of people looking to buy and not enough homes available on the market. When demand for homes is higher than the supply, prices are bound to go up. 

Nationally home prices have increased on average 45% in the last 5 years. If you have owned your home in this time frame, it's highly likely that your home's price has increased. Whether you’re thinking about selling your home or you just wondering about where the current market is at, the upward shift could be more than you expected. 

How the Market Affects Your Home’s Value

You might be wondering: How does all this translate into the value of your home? National trends can provide us with a general sense, but it is important to keep in mind that we also need to look at the local conditions. 

Here’s a breakdown: 

1. National Trends: Home values have spiked nearly 45% in the past five years across the U.S. This a huge gain for homeowners who have held onto their properties during this time period. 

2. State and Local Variances: Each state and local markets perform differently. For example, areas with fewer homes on the market are marking at a higher demand which can be seen having a higher spike in home values. An example of these would be tech hubs and growing cities. Meanwhile areas that the market is slower may not see as much of an increase in the housing market. 

If you have been holding off on selling because you were concerned about buying a new home at the current market prices and rates, knowing your current home's value could help close the gap. With a rise in equity, you may be able to sell for more than you were expecting which will give you more peace of mind when purchasing your next property for a higher price. 

How to Price Your Home Right

So, how do you determine what your home is really worth in today’s market? Here are some steps to guide you:

1. Start with State and National Averages: While it's great to have a sense of the broader trends — like the average 45% price increase over the past five years — the local market is what truly affects your home's pricing.

2. Consult a Local Real Estate Agent: Real estate agents have their finger on the pulse of the market. They can provide insights specific to your area, including inventory levels, buyer demand, and comparable home prices nearby. Additionally, an agent can take into account any improvements you've made to your home (such as renovations or upgrades) that could increase its value.

3. Consider Market Conditions: Are inventory levels still low in your area? If so, that could drive prices higher, making it a seller's market. Conversely, if the market has cooled off slightly, your home might not command as high a price, but that also means you'll have less competition when you list.

4. Factor in Your Home’s Condition: How well-maintained is your property? A home that’s in top condition will naturally be worth more than one that requires significant repairs. Renovations, curb appeal, and even the layout of the home can play a big role in determining its market value.

Bottom Line: Understanding Your Home’s Worth

Home values have skyrocketed over the last five years, and if you’ve been holding onto your property, chances are it’s worth more than you think. With such significant price increases, you’re in a position to potentially make a considerable profit when you decide to sell.

However, to ensure you are pricing your home correctly, it’s essential to consider your local market conditions, the condition of your home, and the current supply and demand in your area. The best way to get an accurate valuation is to connect with a real estate agent. They can help you assess all the factors affecting your home’s price and provide you with an accurate estimate.

Are you curious about how much your home is worth today? Reach out to a local real estate agent to get a clear, accurate picture of your home’s value in this ever-evolving market. With the right guidance, you can make informed decisions and ensure you get the best possible price for your property.