Home prices on the rise, when will it stop?

Up a record high 19.8%, what’s next for U.S. home prices? I get asked that most days and you’re all smart enough to know that type of growth is not sustainable, so what’s next? 

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Median home prices are anticipated to rise by 7.9% between the fourth quarter of 2021 and the fourth quarter of 2022, according to the latest forecast put out by fannie mae. Though a significant drop off from the highs we’re experiencing today, historically, 7.9% would still represent strong growth. (For reference, U.S. home prices have climbed 4.1% year over year since 1987.)

Yes, mortgage rates may rise next year, but it’s likely the shortage of homes available will remain the driving force for price appreciation through 2022. Rising rates will surely put some pressure on rising home prices, but will it be enough?

With all that said, it’s one thing to read numbers and make predictions and another to watch it actually play out. Afterall, no one could have predicted the turn in the market that the pandemic brought on. I’ve attached some articles below that I’ve been browsing with differing opinions and projections on what’s to come.

What do you think we’re due to expect? I’d love to hear from you and you know how to reach me:

via phone (310) 981-3322 or by email: Euan@HoldenREP.com

Check out some differing opinions and projections:

2022 California Housing Market Forecast

https://www.zillow.com/research/home-values-sales-forecast-sept-2021-30222/

https://fortune.com/2021/10/21/home-prices-2022-forecast-corelogic/