Will Home Prices Still Increase in 2022?
Home appreciation has been busy this year. According to many leaders in the industry, home prices have been skyrocketing all year and are still on the rise. Data shows all over the market that the percentages are still rising year-over-year.
The latest percentages of the year-over-year increase in home price appreciation are all-around 18%. The House Price Index (HPI) that is part of the Federal Housing Finance Agency (FHFA) reported 18.8%, the S. National Home Price Index from S&P Case-Shiller 18.6% and the Home Price Insights Report from CoreLogic is 18%.
The increases are found across the board at every price point. CoreLogic’s HPI sees almost a 19% increase year-over-year in all price points. The low price point saw a 22.1% increase, the low-to-middle saw a 20% increase, the middle-to-moderate saw a 19.9% increase and the high price point saw a 19.1% increase.
The FHFA reported an increase across the country. The highest increase year-over-year in the second quarter in 2021 was in the mountain region is 22.9% and the lowest was seen in West North Central with a 14.9% increase. The remainder includes New England at 20.4%, Pacific at 20.1%, South Atlantic at 17.3%, Middle Atlantic at 17.1%, East South Central at 16.4%, East North Central at 15.7%, West South Central at 15% and West North Central at 14.9%. Overall the United States saw an average of a 17.4% increase.
Prices in 2022 should also increase. The future still sees a low housing inventory with high demands. Home appreciation will still be going on in 2022 but more moderate.
“Given the widespread demand and considering the number of standalone homes built during the past decade, the single-family market is estimated to be undersupplied by 4.35 million units by 2022,” reported CoreLogic.
If you are in the market for a home, contact your local Realtor who can help you along the way. The next year 2022 will hopefully see a great boost in the housing market.
