Buyer's Tips 08.16.2022

Will home prices fall this year?

There is a question that is coming up almost every day with clients who are thinking of buying or selling, will home prices fall this year?

Will home prices fall this year?

  • The first thing to understand, is that home prices appreciated roughly 15% in 2021.
  • That is over three times the average pre-pandemic increase!
  • According to the latest forecasts, prices will still appreciate by roughly 10% in 2022.

The big question is, why did home prices increase so dramatically in 2021?

  • First, historically-low mortgage rates motivated more buyers to enter the market.
  • Next, the demand caused a shortage homes available for sale.
  • Last but not least, that led to bidding wars which drove prices up.

What Does That Mean for You?

  • Currently, the market is beginning to move back to pre-pandemic levels.
  • The forecast for 10% home price growth in 2022 is still more than double the typical increase for a normal market.
  • So, despite what you may have heard, experts say home prices won’t fall in most markets. 

Bottom Line

  • If you’re thinking of making a move, you shouldn’t wait for prices to fall.  They’ll just appreciate more moderately!

 I hope that’s helpful, feel free to reach out.  I’m always here to help! 

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