Will Home Prices fall this year in Chester County? Here’s what experts say. This question is on the mind of many of us.
If you would prefer to listen to our podcast of 5/14/22 on this topic, just click on the below hyperlink to go to the 14 minute recording. https://bit.ly/Will_Home_Prices_Fall_This_Year
Whether you’re a potential homebuyer, seller, or both, the answer to this question matters for you. Let’s break down what’s happening with home prices, where experts say they’re headed, and how this impacts your homeownership goals.
What’s Happening with Home Prices?
Home prices have seen 121 consecutive months of year-over-year increases. CoreLogic says:
“Price appreciation averaged 15% for the full year of 2021, up from the 2020 full year average of 6%.”
So why are prices climbing so much? It’s because there are more buyers than there are homes for sale. This imbalance is expected to maintain that upward pressure on home prices because homes for sale are a hot commodity in today’s low-inventory housing market.
Where Do Experts Say Prices Will Go from Here?
Experts say the housing market isn’t set up for a price decline due to that ongoing imbalance between supply and demand. In the latest home price forecasts for 2022, they’re calling for ongoing appreciation throughout the year (see graph below):
While the experts are forecasting more moderate price appreciation, the 2022 projections show price gains will remain strong throughout this year. First American explains it like this:
“While house price growth is expected to moderate from the rapid pace of 2021, strong home buyer demand against a backdrop of historically tight inventory of homes for sale will likely keep appreciation positive in the coming year.”
What Does That Mean for You?
The biggest takeaway is that none of the experts are projecting depreciation. If you’re a homeowner thinking about selling, the higher price appreciation over the last two years has been great for your home’s value, but it’s also something you should factor in when planning your next steps. If you’ll also be buying a home after selling your current house, you shouldn’t wait for prices to fall. Waiting will only cost you more in the long run because climbing mortgage rates and rising home prices will have an impact on your next home purchase. Freddie Mac says:
“If you’re thinking about waiting until next year and that maybe rates are higher, but you’ll get a deal on prices – well that’s risky. It may be more advantageous to purchase this year relative to waiting until 2023 at this time.”
IN ADDITION TO THE FORECASTS, LETS TAKE A LOOK AT SOME RECENT HISTORY.
The median priced house in Chester county just 5 short years ago cost $380,000. By 2021 that was up to $511,483, That is a 31% gain and better than 6% a year. And 2022 so far is continuing this strong trend. This strong trend won’t continue forever and we will have a correction. However, with history as our guide, we will quickly recover and continue the march to higher prices.
If you would like to listen to our podcast of 5/14/22 on this topic, just click on the below hyperlink to go to the 14 minute recording. https://bit.ly/Will_Home_Prices_Fall_This_Year
Bottom Line
If you’re thinking of selling to move up, you shouldn’t wait for prices to fall. Experts say prices will continue to appreciate this year. That means, if you’re ready, buying your next home before prices climb further may make the most financial sense. Let’s connect to begin the process of selling your current home and looking for your next one before prices rise higher. Call or text to 484-574-4088 or check out the website at www.johnherreid.com.
Hope to talk with you soon.