Expert Advice for Buying a Home During the Holidays
Learn More
Do you want content like this delivered to your inbox?
Share
Share

What Everyone Wants To Know: Will Home Prices Decline in 2022?

Paul Tosello

Paul has been in Real Estate for 37 years, working as a Realtor, but in addition he owned a real estate consulting and coaching company.  He has ...

Paul has been in Real Estate for 37 years, working as a Realtor, but in addition he owned a real estate consulting and coaching company.  He has ...

Dec 28 5 minutes read

Courtesy of Keeping Current Matters

If you’re thinking of buying a home in today’s housing market, you may be wondering how strong your investment will be. You might be asking yourself: if I buy a home now, will it lose value? Or will it continue to appreciate going forward? The good news is, according to the experts, home prices are not projected to decline. Here’s why.

With buyers still outweighing sellers, home prices are forecast to continue climbing in 2022, just at a slower or more moderate pace. Why the continued increase? It’s the simple law of supply and demand. When there are fewer items on the market than there are buyers, the competition for that item makes prices naturally rise.

And while the number of homes for sale today is expected to improve with more sellers getting ready to list their houses this winter, we’re certainly not out of the inventory woods yet. Thus, the projections show continued appreciation, but at a more moderate rate than what we’ve seen over the past year.

Here’s a look at the latest 2022 expert forecasts on home price appreciation:

What Everyone Wants To Know: Will Home Prices Decline in 2022? | Keeping Current Matters

What’s the biggest takeaway from this graph? None of the major experts are projecting depreciation in 2022. They’re all showing an increase in home prices next year.

And here’s what some of the industry’s experts say about how that will play out in the housing market next year:

Brad Hunter of Hunter Housing Economics explains:

“. . . the recent unsustainable rate of home price appreciation will slow sharply. . . . home prices will not decline. . . but they will simply rise at a more sustainable pace.”

Danielle Hale from realtor.com agrees:

“Price growth is expected to move back toward a normal range, but this is on top of recent high prices, . . . So prices will [still] hit new highs. . . . The pace of price growth is going to slow notably . . . ”

What Does This Mean for the Housing Market?

While home price appreciation is expected to continue, it isn’t projected to be the record-breaking 18 to almost 20% increase the market saw over the past 12 months. Overall, it’s important to note that price increases won’t be as monumental as they were in 2021 – but they certainly won’t decline anytime soon.

What Does That Mean for You?

With motivated buyers in the market and so few homes available to purchase, the imbalance of supply and demand will continue to put upward pressure on home prices in 2022. And when home price appreciation is in the forecast, that’s a clear indication your investment in homeownership is a sound one.

Bottom Line

It’s important to know that home prices are not projected to decline in the new year. Instead, they’re forecast to rise, just at a more moderate pace. That’s why it’s mission-critical to work with a trusted advisor to make sure you’re up to date on what’s happening with home price appreciation in your market, so you can make an informed decision about your next move.

Graph courtesy of Keeping Current Matters

Unsure You Should Buy or Sell a Home?

CLIENT SUCCESS STORY
Meet John & Lynn

"We were busting at the seams!  The house we were living in was our starter house.  It was great when it was just Lynn and I, but when our two kids came along we quickly realized we needed more space!"

John & Lynn had some hurdles to jump - figure out how to sell their house & buy a new construction home at the same time. They also did all of this during the COVID-19 pandemic!

Read John & Lynn's full story

Lorem ipsum dolor sit amet enim. Etiam ullamcorper.

Our Selling Programs:

Instant Cash Offer

Want to bypass the traditional selling process? The Tosello Team will connect you a competitive, no obligation cash offer from an iBuyer for your home, so you can skip out on showings and move on your own time.

Learn More

Fix Up, Sell Up

Get your home prepped for sale without the hassle or any out-of-pocket costs with a service provider.With most iBuyers and Cash Offer programs, you’re on your own to negotiate, and it can be difficult to determine the actual net proceeds you’ll earn from selling your house.

Learn More

Our Selling Programs:

Buy Before You Sell

Make a winning, all-cash offer. 

In the conventional home buying process, you need to sell your current home so you can purchase your next one. This leads to rushed decisions and unnecessary stress. Not anymore. 

We have access to a program to get you the cash you need to buy before you sell so you stay in control.

Learn More

Sell Your House With Us

We will market your house like crazy to generate the highest price in the shortest amount of time. 




Learn More
We use cookies to enhance your browsing experience and deliver our services. By continuing to visit this site, you agree to our use of cookies. More info