Let’s talk about 2022 Home Price Projections

Let’s talk about 2022 Home Price Projections

  • Simantha Robinson
  • 08/21/22

If you’re wondering if home prices will come down due to the cooldown in the housing market or a potential recession, here’s what you need to know. Not only are experts forecasting home prices will continue to appreciate nationwide this year, but most of them also actually increased their projections for home price appreciation from their original 2022 forecasts.

For Source - Fannie Mae January 2022 Appreciation Forecast was 7.6% and now the latest 2022 Appreciation Forecast is 16.0%. Also, Freddie Mac Appreciation Forcast in January was 6.2% and now 12.8%. Numbers have changed drastically.

Most sources adjusted up and call for more appreciation in 2022 than they initially projected this January. 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.

Knowing that experts forecast home prices will continue to appreciate in most markets and that they’ve actually increased their original projections for this year should help you answer the question: will home prices fall? According to the latest forecasts, experts are confident prices will continue to appreciate this year, although at a more moderate rate than they did in 2021.

Here’s the thing…

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 and talk about it.

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