Home Prices Going Up or Down

Home Prices: Unveiling the Truth! Analyzing Y-O-Y vs. M-O-M Trends for Accurate Market Insights 📈📉

Hello This is Rima Rafeh with eXp Realty

The media often presents conflicting information about home prices, leaving us confused. Understanding the different data methods can help clarify the situation:

🔄 Year-over-Year (Y-O-Y):

Y-O-Y compares home prices from the same month or quarter in the previous year. It provides a comprehensive view of long-term trends and annual growth rates. For example, comparing April 

2023 prices to April 2022 prices.

📊 Month-over-Month (M-O-M):

M-O-M compares home prices from one month to the next. It captures immediate shifts in demand, supply, seasonal trends, or the impact of specific events. For example, comparing May 2023 prices to June 2023 prices.

Both Y-O-Y and M-O-M comparisons have their merits and serve different purposes:

📈 Y-O-Y assessments focus on long-term trends and overall market appreciation or depreciation.

📉 M-O-M assessments provide a more immediate snapshot of short-term movements and price fluctuations.

Understanding the time frame being analyzed is key to interpreting home price data accurately.

So, the next time you come across headlines about home prices, consider the data method being used and the specific analysis being presented. 

This knowledge will help you navigate through the noise and gain a clearer understanding of the housing market.

🏠 Stay informed, make informed decisions! 📊🔍