If you’re wondering if home prices are going to come down
due to the cooldown in the housing market or a potential recession, here’s what
you need to know. Not only are experts forecasting home prices will continue to
appreciate nationwide this year, but most of them also actually increased their
projections for home price appreciation from their original 2022 forecasts
(shown in green in the chart below):
As the chart shows, most sources adjusted up, and now call
for more appreciation in 2022 than they originally projected this January. But
why are experts so confident the housing market will see ongoing appreciation?
It’s because of supply and demand in most markets. As Bankrate says:
“After all, supplies of homes for sale remain near record
lows. And while a jump in mortgage rates has dampened demand somewhat, demand
still outpaces supply, thanks to a combination of little new construction and
strong household formation by large numbers of millennials.”
Knowing that experts forecast home prices will continue to
appreciate in most markets and that they’ve actually increased their original
projections for this year should help you answer the question: will home prices
fall? According to the latest forecasts, experts are confident prices will
continue to appreciate this year, although at a more moderate rate than they
did in 2021.
If you’re worried home prices are going to decline, rest
assured many experts raised their forecasts to say they’ll continue to
appreciate in most markets this year. If you have questions about what’s
happening with home prices in our local area, let’s connect.