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Experts Increase 2022 Home Price Projections

Friday, August 19, 2022   /   by Laura Larson

Experts Increase 2022 Home Price Projections

Here's what you need to know if you're wondering whether home prices may decrease as a result of the cooling housing market or a future recession. Not only do experts anticipate that home prices will rise across the country this year, but the majority of them have also raised their expectations for home price growth from their initial 2022 forecasts.

Most sources adjusted up and now call for more appreciation in 2022 than they originally projected this January. But why are experts so confident the housing market will see ongoing appreciation? It’s because of supply and demand in most markets. As Bankrate says: “After all, supplies of homes for sale remain near record lows. And while a jump in mortgage rates has dampened demand somewhat, demand still outpaces supply, thanks to a combination of little new construction and strong household formation by large numbers of millennials.”

Knowing that experts forecast home prices will continue to appreciate in most markets and that they’ve actually increased their original projections for this year should help you answer the question: will home prices fall? According to the latest forecasts, experts are confident prices will continue to appreciate this year, although at a more moderate rate than they did in 2021.

Bottom Line
If you’re worried home prices are going to decline, rest assured many experts raised their forecasts to say they’ll continue to appreciate in most markets this year. If you have questions about what’s happening with home prices in your local area, connect with Laura Larson now.