{"id":8036,"date":"2022-08-11T06:00:15","date_gmt":"2022-08-11T10:00:15","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=8036"},"modified":"2022-08-11T06:00:15","modified_gmt":"2022-08-11T10:00:15","slug":"what-does-the-rest-of-the-year-hold-for-home-prices","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=8036","title":{"rendered":"What Does the Rest of the Year Hold for Home Prices?"},"content":{"rendered":"
\n

\"What<\/p>\n

Whether you\u2019re a potential homebuyer<\/a>, seller<\/a>, or both, you probably want to know: will home prices fall this year? <\/em>Let\u2019s break down what\u2019s happening with home prices, where experts say they\u2019re headed, and why this matters for your homeownership<\/a> goals.<\/span><\/p>\n

Last Year\u2019s Rapid Home Price Growth Wasn\u2019t the Norm<\/strong><\/h4>\n

In 2021, home prices appreciated quickly. One reason why is that record-low mortgage rates motivated more buyers to enter the market.\u00a0As a result, there were more people looking to make a purchase than there were homes available for sale. That led to competitive bidding wars which drove prices up. CoreLogic<\/em> helps explain<\/a> how unusual last year\u2019s appreciation was:<\/p>\n

\n

\u201c<\/em>Price appreciation averaged 15% for the full year of 2021<\/em><\/strong>, up from the 2020 full year average of 6%.\u201d<\/em><\/p>\n<\/blockquote>\n

In other words, the pace of appreciation in 2021 far surpassed the 6% the market saw in 2020. And even that appreciation was greater than the pre-pandemic norm which was typically around 3.8%. This goes to show, 2021 was an anomaly in the housing market spurred by more buyers than homes for sale.<\/p>\n

Home Price Appreciation Moderates Today<\/strong><\/h4>\n

This year, home price appreciation is slowing (or decelerating) from the feverish pace the market saw over the past two years. According to the latest forecasts, experts say on average, nationwide, prices will still appreciate by roughly 10% in 2022 (see graph below<\/em>):<\/p>\n

\"What<\/a><\/p>\n

Why do all of these experts agree prices will stay continue to rise? It\u2019s simple. Even though housing supply<\/a> is growing today, it\u2019s still low overall thanks to several factors, including a long period of underbuilding homes<\/a>. And experts say that\u2019s going to help keep upward pressure on home prices<\/a> this year. Additionally, since mortgage rates are higher this year than they were last year, buyer demand has slowed.<\/p>\n

As the market undergoes this change, it\u2019s true price appreciation this year won\u2019t match the feverish pace in 2021. But the rapid appreciation the market saw last year wasn\u2019t sustainable anyway.<\/p>\n

What Does That Mean for You?<\/strong><\/h4>\n

Today, the market is beginning to move back toward pre-pandemic levels. But even the forecast for 10% home price growth in 2022 is well beyond the 3.8% that\u2019s more typical for a normal market.<\/p>\n

So, despite what you may have heard, experts say home prices won\u2019t fall in most markets.\u00a0They\u2019ll just appreciate more moderately. <\/strong><\/p>\n

If you\u2019re worried the house you\u2019re trying to sell or the home you want to buy will decrease in value, you should know experts aren\u2019t calling for depreciation in most markets, just deceleration<\/a>. That means your home should still grow in value, just not as fast as it did last year.<\/p>\n

Bottom Line<\/strong><\/h3>\n

If you\u2019re thinking of making a move, you shouldn\u2019t wait for prices to fall. Experts say nationally, prices will continue to appreciate this year, just at a more moderate pace. When you\u2019re ready to begin the process of buying or selling, let\u2019s connect so you have a local market expert on your side each step of the way.<\/p>\n

Content previously posted on Keeping Current Matters<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

\"WhatWhether you\u2019re a potential homebuyer, seller, or both, you probably want to know: will home prices fall this year? Let\u2019s break down what\u2019s happening with home prices, where experts say they\u2019re headed, and why this matters for your homeownership goals. Last Year\u2019s Rapid Home Price Growth Wasn\u2019t the Norm In 2021, home prices appreciated quickly. [\u2026]<\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","footnotes":""},"categories":[3,84,85,86,121],"tags":[],"class_list":["post-8036","post","type-post","status-publish","format-standard","hentry","category-blog","category-for-buyers","category-for-sellers","category-housing-market-updates","category-pricing"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/8036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8036"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/8036\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}