Key Takeaways:
- With homeowners enjoying historical gains in their home equity, can home values continue their rise?
- Imbalanced trends in housing supply and buyer demand are going to persist
- Let our experienced team of dedicated real estate agents help you seize the best opportunity on the market
Your Look Behind the Scenes of the Market
You’re not alone if you’ve been observing today’s hot housing market and wondering if home values will fall this year or if it’s the right time to make a move and buy or sell. Understanding the behind-the-scenes dynamics driving today’s market is critically important when you finally decide to make a move. So let’s look at what’s happening with home prices, where experts see the market heading, what’s going on with housing supply and demand, and how these factors impact your homeownership goals.
What’s happening with home prices?
As you’re probably aware, home prices have gone up tremendously over the last few years. However, you may not know that home values have enjoyed 121 consecutive months of year-over-year increases, making home ownership a very stable investment.
“Price appreciation averaged 15% for the full year of 2021, up from the 2020 full-year average of 6%.”
CoreLogic
So why have home prices climbed so much recently? It’s simple: there is greater buyer demand than available homes for sale. This imbalance will continue to persist, applying upward pressure on home prices because homes for sale are a hot commodity in today’s historically low-inventory housing market.
Where do experts say home prices will go from here?
In the latest home price forecasts for 2022, real estate experts anticipate that the housing market will not experience significant price declines due to the continued imbalance between supply and demand.
While experts foresee more moderate home value appreciation, the 2022 projections show that equity gains will remain strong this year.
“While house price growth is expected to moderate from the rapid pace of 2021, strong home buyer demand against a backdrop of historically tight inventory of homes for sale will likely keep appreciation positive in the coming year.”
First American
What does that mean for home buyers and sellers?
The biggest takeaway is that not one expert projects home values to decline. So if you’re a current homeowner who’s been thinking about selling and using the equity you’ve earned over the last two years to buy another home, you shouldn’t wait for prices to fall. Waiting will only cost you more in the long run because climbing mortgage interest rates and rising home prices will impact your next home purchase.
“If you’re thinking about waiting until next year and that maybe rates are higher, but you’ll get a deal on prices – well that’s risky. It may be more advantageous to purchase this year relative to waiting until 2023 at this time.”
Freddie Mac
Make Your Move Today
Whatever your reason is for hesitating to make a move in today’s market, you shouldn’t wait. While experts foresee home values continuing to appreciate this year, buying your next dream home before prices climb even further may make the most financial sense. When you’re ready, let’s connect to begin selling your current home and putting all of the equity you’ve earned to good use.