Here’s why experts think that home prices won’t fall in the coming year.
Will home prices fall this year? Whether you’re a potential buyer, seller, or both, the answer matters for you. Let’s break down the numbers and talk about what experts are saying.
Home prices have seen 121 consecutive months of year-over-year increases. CoreLogic says that price appreciation averaged 15% across all of 2021, which is up from an average of 6% in 2020.
Why are prices climbing so much? It’s because there are more buyers than homes for sale. This imbalance is expected to maintain the upward pressure on home prices; after all, properties are a hot commodity in this low inventory market.
"The bottom line is that you shouldn’t wait to sell."
Experts say that the housing market isn’t set up for a price decline due to this ongoing supply and demand imbalance. In the latest 2022 home price forecast, they call for ongoing appreciation all year long. While the projected appreciation is more moderate than in 2021, price gains will still remain strong throughout the year.
First American explains it like this: “While house price growth is expected to moderate from the rapid pace of 2021, strong home buyer demand against a backdrop of historically tight home inventory will likely keep appreciation positive in the coming year.”
The biggest takeaway is that none of the experts are projecting depreciation. If you’re a homeowner thinking about selling, the high price appreciation has been great for your home’s value. However, you should also be thinking about appreciation when planning your next steps. If you’ll be buying another house after you sell, you shouldn’t wait for prices to fall.
Waiting will only cost you more in the long run because rising interest rates and continued price appreciation will have an impact on your next home purchase. Freddie Mac says that it’s risky to wait till next year, hoping that prices will drop. Rates might be higher, so it's more advantageous to purchase this year.
The bottom line is that you shouldn’t wait to sell. Let’s connect and start the home-selling process so that you can get into your new house before prices rise. Just call or email me. I’d love to help.