With all of the uncertainty in the world today, a lot of people are wondering how it will affect the real estate market…

If you remember last year (2021) we had much uncertainty, and even with COVID running wild we still saw a thriving real estate market. 

Many analysts projected home price appreciation would slow dramatically in the fall of 2021 and then continue to soften throughout 2022. So far, that hasn’t happened. The major price indices are all revealing ongoing double-digit price appreciation.

As the graph in the video reveals, last year, home price appreciation accelerated dramatically from January to July according to all three indices. Then, it began to decelerate in August when prices appreciated at a slower pace, but it didn’t decline. Many thought that would be the beginning of a rapid slowdown in the level of home price appreciation, but as the data shows, that wasn’t the case. Instead, prices began to level off for a few months before two of the three indices saw appreciation re-accelerate again in December.

To clarify, deceleration is not the same as depreciation. Acceleration means prices rise at a greater year-over-year pace than the previous month. Deceleration means home values continue to rise but at a slower pace of year-over-year appreciation. Depreciation means prices drop below current values. No one is forecasting that to happen.

What Does This Mean for You?

Whether you’re a first-time purchaser or someone looking to sell your current house and buy a home that better fits your needs, waiting to decide what to do will cost you in two ways:

1. Mortgage rates are forecast to rise this year. So if you’re on the fence about purchasing a home, acting sooner than later can help save you money.

2. Home prices should continue to appreciate at double-digit levels for some time. Yes, you could wait to see values continue to rise but with the interest rate increase it may not be the best option to capitalize on the market. We still have a shortage of homes for sale and high demand which continues to drive home values to climb.

If you have any questions about buying or selling a home, feel free to reach out to us at 855-Tom-Daves or visit our website at www.TomDaves.com