Will Home Prices Fall This Year? Here's What Experts Say.

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Real Estate Agent with HomeSmart 0561240

Will Home Prices Fall This Year? Here's What Experts Say.

 

Many people are wondering: will home prices fall this year? Whether you're a potential homebuyer, seller, or both, the answer to this question matters for you. Lets break down what's happening with home prices, where experts say theyre headed, and how this impacts your homeownership goals.

What's Happening with Home Prices?

Home prices have seen 121 consecutive months of year-over-year increases. CoreLogic says:

Price appreciation averaged 15% for the full year of 2021, up from the 2020 full year average of 6%.

So why are prices climbing so much? Its because there are more buyers than there are homes for sale. This imbalance is expected to maintain that upward pressure on home prices because homes for sale are a hot commodity in todays low-inventory housing market.

Where Do Experts Say Prices Will Go from Here?

Experts say the housing market isn't set up for a price decline due to that ongoing imbalance between supply and demand. In the latest home price forecasts for 2022, they're calling for ongoing appreciation throughout the year (see graph below):

Will

While the experts are forecasting more moderate price appreciation, the 2022 projections show price gains will remain strong throughout this year. First American explains it like this:

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.

What Does That Mean for You?

The biggest takeaway is that none of the experts are projecting depreciation. If you're a homeowner thinking about selling, the higher price appreciation over the last two years has been great for your homes value, but its also something you should factor in when planning your next steps. If you'll also be buying a home after selling your current house, you shouldn't wait for prices to fall. Waiting will only cost you more in the long run because climbing mortgage rates and rising home prices will have an impact on your next home purchase. Freddie Mac says:

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.

Bottom Line

If you're thinking of selling to move up, you shouldn't wait for prices to fall. Experts say prices will continue to appreciate this year. That means, if you're ready, buying your next home before prices climb further may make the most financial sense. Lets connect to begin the process of selling your current home and looking for your next one before prices rise higher.

 

 

 

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“YOUR Rock-Solid Choice Realtor for Making Home Sellers a Profit & Home Buyers Equity”

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Comments (10)

Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is a great report to share.

I hope you are having a very productive month.

May 21, 2022 06:17 AM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Shayne Stone great info and good information and correct info for once - our media tends to be so negative, it's good to see a balanced report. The numbers are National of course and we've seen bigger stats at: 18.6% to 27.6% growth in San Diego year to date.

May 21, 2022 06:31 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you for the informative post.  We have certainly started off with a strong 2022 in Elk Grove.  It does seem like this will be another year of appreciation. 

May 21, 2022 06:47 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great information.  Thanks for sharing and enjoy your weekend!

May 21, 2022 07:03 AM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Shayne Stone very good helpful report for what experts say about will home prices fall this year.

May 21, 2022 09:00 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Hope you are right, Great information.  Thanks for sharing and have a wonderful day! bill

May 21, 2022 10:55 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Shayne  and great information to share with us here in the rain.  Most people need this advice.

May 21, 2022 10:56 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Shayne Stone housing experts are a lot like the weatherman, they are more wrong than they are right.  But in this case there prediction is correct.

May 21, 2022 01:40 PM
Brenda J. Andrew
ULTIMA REAL ESTATE - Corpus Christi, TX
Professional Realtor in Corpus Christi, TX

Hi Shayne Stone - This is such great information.  We are having lots of buyers here still in the Corpus Christi market and prices are still rising, some with reductions but if the home is priced well, it will sell.  Thanks for sharing this valuable information!  Have a great day!

May 23, 2022 07:14 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate Brokered by Real - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

The main stream media tends to exaggerate in an attempt to get clicks and traffic to their articles. I have been seeing price reductions on some properties because they were overpriced at the start! Thanks for the report Shayne, much appreciated.

May 23, 2022 09:43 AM