What is Up with Home Prices?
November 12, 2021
So many people have asked recently, what is up with home prices? Will they continue to go up? Will they finally level out? How much have they really risen over the last twelve months? How does this affect home values? What are the experts thinking will happen next year? These questions and more have been on everyone's mind here lately. Well I may not have all the answers for you on these but let me tell you what I think.
We all know home values have risen a lot in the last twelve months. This is a great thing for homeowners. Everyone wants the value of their home to rise especially if they are already considering selling. Values on the rise just makes the selling process have a little sweeter reward. According to CoreLogic homes across America home values are roughly 18% higher now than they were this same time last year. In addition to that home prices have continued to go up each month for the last several months rapidly.
Luckily for buyers it appears that home price acceleration/rising has peaked. This should mean that it is starting to level off. I know that the increase in pricing has made it difficult at times for some buyers. That coupled with the limited inventory on the market made finding your dream home almost impossible. But I do have some good news for those people and many others still looking for their next home… Many experts say that the prices have hit a plateau and they will drop approximately 15% by the end of the year.
If you just bought a home you might have just about spit out your drink at the thought that your value is going to drop by 15%! But let me clear that up, this does not mean that the values are going to drop. It simply means that the rate of appreciation is going to slow down but it will still stay in a great range.
Alright so now let's talk about what I and many others think will happen next year. As we know this year was primarily high demand and low supply. However, we already know there is more new construction happening and there are more and more homes being listed each week. With this occurring the supply and demand in the real estate market will start to level out. While the rise in supply may cause the rate of appreciation to slow I also feel it will give more buyers a chance to get in the game and possibly buy a home.
Here’s the bottom line, if you were hesitant to jump in to buying a home this year because of the lack of inventory or the fear of escalating prices, the coming year should bring you some relief. I would Love to help you tackle this huge milestone in your life and I will do my best to guide you through the process as stress free and easily as possible. Call me today and let me get started working for you! I want to be YOUR realtor!