What Does the Rest of the Year Hold for Home Prices?
- Last Year’s Rapid Home Price Growth Wasn’t the Norm
In 2021, home prices appreciated quickly. There were more people looking to make a purchase than there were homes available for sale. That led to competitive bidding wars which drove prices up.
That appreciation was greater than the pre-pandemic norm which was typically around 3.8%. This goes to show, 2021 was an anomaly in the housing market spurred by more buyers than homes for sale.
- Home Price Appreciation Moderates Today
This year, home price appreciation is slowing from the feverish pace the market saw over the past two years. According to the latest forecasts, experts say on average, nationwide, prices will still appreciate by roughly 10% in 2022.
Even though housing supply is growing today, it’s still low overall. And experts say that’s going to help keep upward pressure on home prices this year. Additionally, since mortgage rates are higher this year than they were last year, buyer demand has slowed.
As the market undergoes this change, it’s true price appreciation this year won’t match the feverish pace in 2021. But the rapid appreciation the market saw last year wasn’t sustainable anyway.
- What Does That Mean for You?
Despite what you may have heard, experts say home prices won’t fall in most markets. They’ll just appreciate more moderately.
That means your home should still grow in value, just not as fast as it did last year. When you’re ready to begin the process of buying or selling, DM me so you have a local market expert on your side each step of the way.
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