If you’re thinking of buying a home in today’s housing market, you may be wondering if I buy a home now, will it lose value? Or will it continue to appreciate? According to the experts, home prices are not projected to decline, which is good news for those wanting to sell.
Home prices are forecast to continue climbing in 2022, just at a slower or more moderate pace, due to the simple law of supply and demand. When there are fewer homes on the market than there are buyers, the competition for that home makes prices naturally rise.
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:
Brad hunter of hunter housing economics explains:
“. . . The recent unsustainable rate of home price appreciation will slow sharply. . . Home prices will not decline. . . But they will simply rise at a more sustainable pace.”
Danielle hale from realtor.Com agrees:
“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’s important to note that price increases won’t be as monumental as they were in 2021 – but they certainly won’t decline anytime soon.
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.
Bottom line
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 The Aaronson Group help you with all of your real estate needs. Call: 949-388-5194 Email: info@previewochomes.com
Posted by The Aaronson Group on
Leave A Comment