Experts say we’re going to keep seeing upward pressure on home prices for some time. Mortgage rates are getting higher and the buyer demand has slowed, but the inventory just isn’t keeping up.
As the market undergoes this change, price appreciation this year won’t match the feverish pace in 2021, but it will not plummet as many pupport. But the rapid appreciation the market saw last year wasn’t sustainable anyway.
What Does That Mean for You?
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’s more typical for a normal market.
So, despite what you may have heard, experts say home prices won’t fall in most markets. They’ll just appreciate more moderately.
If you’re worried the house you’re trying to sell or the home you want to buy will decrease in value, you should know experts aren’t calling for depreciation in most markets, just deceleration. That means your home should still grow in value, just not as fast as it did last year.
The Proverbial Bottom Line
If you want to make a move, you shouldn’t wait for prices to fall. Experts say prices will continue to appreciate this year, just at a more moderate pace. It is imperative that you work with a market expert on your side.