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.
- 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!