What’s Driving the Continued Price Growth Today? According to the U.S. Home Price Insights Report from CoreLogic , home values increased by an average of 15% in 2021. That dramatic rise in home prices is a direct result of more buyers in the market (demand) than houses available for sale (supply). When demand is high and supply is low like it is right now, prices naturally rise. The graph below shows 2022 home price forecasts from several industry experts. The average of these projections indicates an expected 8.9% home price appreciation in 2022 . While this isn’t quite the dramatic 15% the market experienced last year, it shows experts are calling for ongoing appreciation. Basically, experts are all indicating home values will continue to climb, just at a more moderate pace.
2022 Home Price Forecasts Based on Expert Projections
10.8% 10.4%
Average of All Forecasts: 8.9%
9.6% 9.0%
8.4% 8.3%
5.8%
Fannie Mae Freddie Mac CoreLogic
HPES
NAR
Zelman
MBA
Bottom Line Selling now is a great way to take advantage of today’s home price appreciation. And when you buy your next home, projections for ongoing appreciation indicate it’ll be a worthwhile investment that should grow in value with time.
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