Experts Increase 2022 Home Price Projections
If you're trying to figure out if home prices are going to plummet as a result of the housing market's cool-down or a potential recession, here's what you need to know. According to experts, home prices will not only continue to rise this year, but many have also raised their original projections for 2022 (shown as green in the chart below).
The chart reveals that most sources have increased their expectations for housing market appreciation in 2022. But why are experts so confident the housing market will see ongoing appreciation? It’s because of supply and demand in most markets. As Bankrate says:
“After all, supplies of homes for sale remain near record lows. And while a jump in mortgage rates has dampened demand somewhat, demand still outpaces supply, thanks to a combination of little new construction and strong household formation by large numbers of millennials.”
With the recent increase in home prices and projections for appreciation in most markets this year, will home prices fall? The answer according to leading experts is no. In fact, they are confident that prices will continue to appreciate this year despite a more moderate rate than last year.
If you’re worried home prices are going to decline, rest assured many experts raised their forecasts to say they’ll continue to appreciate in most markets this year. If you have questions about what’s happening with home prices in our local area, let's connect.