Experts Increase 2022 Home Price Projections
Are you wondering if home prices are going to come down due to the cooldown in the housing market or a potential recession? Here’s what you need to know. Experts are forecasting home prices will continue to appreciate nationwide this year. Most of them actually increased their projections for home price appreciation from their original 2022 forecasts (shown in green in the chart below):
As the chart shows, most sources adjusted up, and now call for more appreciation in 2022 than they originally 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.”
Will Home Prices Fall?
Experts forecast home prices will continue to appreciate in most markets. And they’ve actually increased their original projections for this year. This 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.
Bottom Line
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. TouchPoint Properties is ready to help you through this process.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice.
