If you’re thinking of buying a home in today’s housing market, you
may be wondering how strong your investment will be. You might be
asking yourself: if I buy a home now, will it lose value? Or will it
continue to appreciate going forward? The good news is, according to the
experts, home prices are not projected to decline. Here’s why.
With buyers still outweighing sellers, home prices are forecast to continue climbing in 2022, just at a slower or more moderate pace.
Why the continued increase? It’s the simple law of supply and demand.
When there are fewer items on the market than there are buyers, the
competition for that item makes prices naturally rise.
And while the number of homes for sale today is expected to improve with more sellers getting ready to list their houses
this winter, we’re certainly not out of the inventory woods yet. Thus,
the projections show continued appreciation, but at a more moderate rate
than what we’ve seen over the past year.
Here’s a look at the latest 2022 expert forecasts on home price appreciation:What’s the biggest takeaway from this graph? None of the major experts are projecting depreciation in 2022. They’re all showing an increase in home prices next year.
And here’s what some of the industry’s experts say about how that will play out in the housing market next year:
“Price growth is expected to move back toward a normal range, but this is on top of recent high prices, . . . So prices will [still] hit new highs. . . . The pace of price growth is going to slow notably . . . ”
What Does This Mean for the Housing Market?
While home price appreciation is expected to continue, it isn’t projected to be the record-breaking
18 to almost 20% increase the market saw over the past 12 months.
Overall, it’s important to note that price increases won’t be as
monumental as they were in 2021 – but they certainly won’t decline
What Does That Mean for You?
With motivated buyers in the market and so few homes available to
purchase, the imbalance of supply and demand will continue to put upward
pressure on home prices
in 2022. And when home price appreciation is in the forecast, that’s a
clear indication your investment in homeownership is a sound one.
It’s important to know that home prices are not projected to decline
in the new year. Instead, they’re forecast to rise, just at a more
moderate pace. Let’s connect to make sure you’re up to date on what’s
happening with home price appreciation in our market, so you can make an
informed decision about your next move.