What Will Housing Prices look like this year?
If you or anyone you know have been thinking of selling or even buying a home, I know the question “What will home prices look like?” will pop up. You may have been going back and forth about buying or selling in todays housing market. Do I sell? Do I buy? Do I wait?
If prices continue to go up, buy now and waiting sell will make more sense. If prices are going to start dropping, then selling now and waiting to buy seems like the better option.
I say, the perfect time for selling or buying a home is always based on when YOU want move. Either way, it is still a good idea to be aware of the direction the market is heading. This will help make the best decision for you.
Let’s get to exploring some different prices for 2022.
The major housing industry entities always release new projection for the ups and downs of home prices for the following year. Instead of just looking at one projection, I want to look at projections from various industry powerhouses including, Freddie Mac, Fannie Mae, and the Mortgage Bankers Association to get a better view of the experts are going to predict.
All of the entities that I looked into did project continued price rises in the housing market. However, they did differ slightly in their exact projections.
CoreLogic - 3.5% projected price increase
Fannie Mae- 5.1% projected price increase
Freddie Mac - 5.3% projected price increase
Mortgage Bankers Association- 8.4% projected price increase.
Now, lets take the average of those four projections together. We will get the price appreciation of 5.58%. This actually tends to be close to the average price increase, 5.6%, found by a survey of analysts. Basically stating that experts all seem to agree that the price of homes will go up around five and a half percent this year.
So what. What does this all mean?
It means your home will continue to appreciate at a very healthy rate, but not as big as it did in the last 2 years.
At first this may seen like the “market is falling” but 5.58% is still a high amount when it comes to pricing a home. If we use the average projection of 5.58%, if a home is selling for X today (put in your average price point for the people you are talking to, but for this example, I’ll use $400K), that same home will be worth X ($422,320 if using $400k) at the end of this year. That is almost of difference of $25,000 in only one year.
I’m not sure about you, but to me that is a lot of money!
If you’re thinking of selling
If you have been thinking of selling your home, these kinds of projections can make you question your decision to sell and take advantage of this or if it’s worth holding off. Of course, there’s no guarantee. Even with the market trend a little on the higher side, you may still be able to get more for your home today than you would if you waited. I’d have to take a look the house, who your most likely buyer is, where your house is located to be able to give you my best guess based on how the market is doing in your specific situation.
Even so, no matter what the projections may say, the best time to sell will always be when you are ready. The ideal time would be when it could get the most buyers as possible.
The best thing to do is reach out to me. We can schedule a time to talk. I can walk you through this market and how we can position your home for the best possible outcome. We can talk about your future plans, financial situation, and more about what roll the projections may play with your specific home.
For Buyers
As a buyer, projections of significant home price increases this year could make you feel like you need to buy now. Again, that might be the right choice for you. We need to remember these projections are just that, projections. Even experts cannot see into the future and guarantee what home prices will be. If only we had a crystal ball!
Projections are useful for getting an idea of what prices may look like this year, but they aren’t the only things you should consider when deciding when to buy a home. There’s are so many other factors to consider such as your financial situation, the time of year, and even what your life plans look like over the next few years.
As soon as you start thinking about buying or selling a home, feel free to reach out. It's never too early to examine everything and start coming up with a real estate plan that will work for you when the time is right. And, don’t worry, I won’t push you to move forward with buying or selling before you say “I’m ready!” All I want to do is get you prepared before you are ready to go so when the time is right everything goes perfectly.
email me at deonna@deonnawalker.com when you are ready to talk more.