One of the major story lines over the last year is how well the residential real estate market performed. One key metric in the spotlight is home price appreciation.
Every region in the country is experiencing at least a 14.9% increase in home price appreciation.
What About Price Appreciation in 2022?
Prices are the result of the balance between supply and demand. The demand for single-family homes has been strong over the last 18 months. The supply of houses available for sale was near historic lows. However, there’s some good news on the supply side. Realtor.com reports:
432,000 new listings hit the national housing market in August, an increase of 18,000 over last year.
There will, however, still be a shortage of supply compared to demand in 2022. CoreLogic reveals:
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.
Price appreciation is expected to slow in 2022 when compared to the record highs of 2021. However, it is still expected to be greater than the annual average of 4.1% over the last 25 years.
If you owned a home over the past year, you’ve seen your household wealth grow substantially, and you’ll see another nice boost in 2022. If you’re thinking of buying, consider buying now as prices are forecast to continue increasing through at least next year.