Key Takeaways:
- Home prices are surging this year, which is directly tied to strong buyer demand and low housing supply.
- Experts predict more moderate home prices in 2022, but next year’s prices will still be higher than the annual average over the last 25 years.
- Prices are expected to continue increasing into 2022—allow Linda Craft & Team to secure a home within your budget today.
Confirmed: Home Prices Are Catapulting
Home price appreciation has been all over this year’s real estate headlines, and there’s at least one common consensus among sources—home prices are surging this year. Several sources have reported year-over-year increases in home price appreciation to be 18-plus percent, including 18.8% in the House Price Index, 18.6% in the S. National Home Price Index, and 18% in the Home Price Insights Report. And serving as further proof, properties have increased in price across all regions of the country and at every price point.
We’ve seen price increases across every price point and region
The most recent Home Price Index from CoreLogic reported each price range to have seen at least a 19% increase year-over-year.
According to the Federal Housing Finance Agency, every region across the country is experiencing at least a 14.9% upturn in home price appreciation.
And to drive our price appreciation point home…
When looking at the U.S. National Home Price Index from S&P Case-Shiller, you’ll see that each major metropolitan area is seeing at least a 13.3% price increase—western cities such as San Diego and Seattle are experiencing price surges as high as 27.1% and 25%, respectively.
Here’s how supply and demand impacts home prices
Home price appreciation is directly related to supply and demand. The combination of strong demand for single-family homes and the near historic lows of housing inventory for sale caused intense home price swells over the last 18 months—but there is a light at the end of the tunnel.
A Realtor.com report noted that 432,000 new listings hit the national market in August, which is an increase of 18,000 more than last year. On the other end of the spectrum, there will still be a housing supply shortage compared to demand in 2022. Citing widespread demand as a partial contributor, CoreLogic predicts that the single-family market will still be undersupplied by about 4.35 million units heading into next year.
You can look forward to more moderate home prices in 2022
Industry experts are calling for home price appreciation to moderate in 2022. This is supported by the Home Price Expectation Survey, which estimates a 5.12% appreciation level next year. Four other financial moguls have made their home appreciation forecasts for 2022, including the National Association of Realtors at 4.4%, the Mortgage Bankers Association at 8.4%, Fannie Mae at 5.1%, and Freddie Mac at 5.3%. While price appreciation is predicted to slow in 2022 when compared to the record highs of this year, it’s still expected to be higher than the annual average of 4.1% over the last quarter century.
Make a Move Before the Market Shifts
Homeowners have benefitted from strong equity growth over the past year, and they’ll earn another wealth boost in 2022. So if you’re thinking of buying a home in the Triangle, we recommend making a move before the market shifts. Prices are expected to continue increasing through at least next year, so now is the time to buy a home within your desired budget with Linda Craft & Team!