What to expect next year?

In the past year, one of the biggest themes was how well the residential real estate market did. Home price appreciation is one crucial statistic that has received a lot of attention recently.

Home prices are rising this year, according to the most recent indexes.

The following are the most recent percentages indicating the yearly rise in home price appreciation:

• The House Price Index (HPI) from the Federal Housing Finance Agency (FHFA): 18.8%
• The S. National Home Price Index from S&P Case-Shiller: 18.6%
• The Home Price Insights Report from CoreLogic: 18%

The significant price hikes may be found at every price point and in every area of the country.

Increases are occurring at all price points

According to CoreLogic's latest Home Price Index, every price category has increased by at least 19% in a yearly stand point:

There are increases in every region of the country

According to the Federal Housing Finance Agency, property prices have increased by at least 14.9% in every region of the country (FHFA):

What Will Happen to the Prices in 2022?

The equilibrium between supply and demand determines prices. Over the previous 18 months, demand for single-family houses has been high. The number of residences for sale was at or near historic lows. On the supply side, though, there is some positive news. According to Realtor.com:

“432,000 new listings hit the national housing market in August, an increase of 18,000 over last year.”

In 2022, however, there will still be a supply shortfall relative to demand. According to CoreLogic,

“Given the widespread demand and considering the number of standalone homes built during the past decade, the single-family market is estimated to be undersupplied by 4.35 million units by 2022.”

However, most predictions predict that home price growth would slow in 2022. According to the Home Price Expectation Survey, which polled over 100 economists, financial strategists, and housing industry specialists, next year's appreciation will be 5.12%.

If you've owned a property in the last year, you've experienced a significant increase in your household wealth, which will continue in 2022. If you're considering about purchasing, do it immediately because prices are expected to rise for at least another year.

You may check the value of your home by visiting our website at https://www.lancianopizante.com/evaluation