The housing market is at a turning point, and if you’re thinking of buying a home, that may leave you wondering: is it the right time to make a move? Let’s turn to the experts for what the future is projected to hold.
Experts Project Mortgage Rates Will Stabilize This year, mortgage rates have climbed over 2% due to the Federal Reserve’s response to inflation. While mortgage rates continue to fluctuate, experts project they’ll start to stabilize in the months ahead, hovering in the low 5% range initially, and then possibly dipping into the high 4% range later next year. That could bring some welcome relief if you’re ready to buy a home (see chart below):
Home Price Forecasts Call for Ongoing Appreciation
In 2021, home prices appreciated rapidly because there were far more people looking to make a purchase than there were homes available for sale. CoreLogic helps explain how unusual last year’s price gains were:
“Price appreciation averaged 15% for the full year of 2021, up from the 2020 full year average of 6%.”
This year, home price appreciation is slowing (or decelerating) from the feverish pace the market saw during the pandemic. According to the latest forecasts, experts say nationwide, prices will still appreciate by roughly 11.3% in 2022 (see graph below):
Even though housing supply has grown this year, it’s still low overall due to a long period of underbuilding homes. And experts say that’s going to help keep upward pressure on home prices. If you’re thinking of making a move, you shouldn’t wait for prices to fall.
Bottom Line As a buyer, you need to know what’s happening in the housing market so you can make the most informed decision possible. Let’s connect to discuss your goals so you can determine the best plan for your move.