What to Expect for End of the Year Home Prices
If you’re in the market for a new home or are thinking of selling, you might be wondering what the market is going to look like towards the end of the year. We’re following the market very closely at Russ Lyon Sotheby’s and this is our breakdown.
Homes appreciated rapidly in 2021. One reason was due to record-low mortgage rates that encouraged more buyers to enter the market. As a result, more people were looking to buy than there were homes on the market for sale. That led to bidding wars, driving prices up.
CoreLogic reports that price appreciation went up an average of 15% on homes in 2021, up from 6% in 2020. And the appreciation in 2020 was still greater than the pre-pandemic norm of about 3.8%. These numbers show us at Russ Lyon Sotheby's that 2021 definitely was not the norm in the housing market.
In 2022, home price appreciation is slowing but the latest forecasts by experts show prices will still appreciate by about 10% this year. Russ Lyon Sotheby’s agrees with these experts on home prices rising since the housing supply was still low even though it’s now growing. There also has been a block of time for the underbidding of homes. Experts say that’ll help keep upward pressure this year on home prices. And remember, buyer demand has slowed due to mortgage rates increasing.
Since the market is moving back toward pre-pandemic levels, the forecast is about 10% home appreciation for the year, which is still much higher than the 3.8% that’s typical in a normal market. In most markets, home prices won’t fall but rather appreciate moderately.
If you’re concerned about buying or selling through Russ Lyon Sotheby's, keep in mind experts are calling for “deceleration” rather than “depreciation” in most markets. That means homes should still increase in value but just not as fast as in 2021.
Don’t wait for prices to fall if you’re thinking of moving. Contact me at Russ Lyon Sotheby’s as a market expert to guide you through the process.