inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2021/05/BarrentineGroupLogo_2021-02.png
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2020/07/kwluxurylogo.png
  • Meet Our Team
  • Our Blog
  • Listings Search
    • Featured Listings
  • Seller and Buyer Resources
    • Seller Resources
    • Buyer Resources
  • Testimonials
  • Giving
  • Videos
  • Contact us
Barrentine Group
310.276.6656
info@barrentinegroup.com
Sign In
Sign Up
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2021/05/BarrentineGroupLogo_2021-02.png
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2020/07/kwluxurylogo.png
  • Meet Our Team
  • Our Blog
  • Listings Search
    • Featured Listings
  • Seller and Buyer Resources
    • Seller Resources
    • Buyer Resources
  • Testimonials
  • Giving
  • Videos
  • Contact us
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2021/05/BarrentineGroupLogo_2021-02.png
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2020/07/kwluxurylogo.png
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2022/01/6b2549b61d5a73547b4c71ba688e9276e5a4fbff.jpg
Housing Market Updates

What’s Going To Happen with Home Prices This Year?

inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2021/05/RedGroupLogo_Circle-01.png
Barrentine Group,01/13/2022

After almost two years of double-digit increases, many experts thought home price appreciation would decelerate or happen at a slower pace in the last quarter of 2021. However, the latest Home Price Insights Report from CoreLogic indicates while prices may have plateaued, appreciation has definitely not slowed. The following graph shows year-over-year appreciation throughout 2021. December data has not yet been released.

What’s Going To Happen with Home Prices This Year? | MyKCM

As the graph shows, appreciation has remained steady at around 18% over the last five months.

In addition, the latest S&P Case-Shiller Price Index and the FHFA Price Index show a slight deceleration from the same time last year – it’s just not at the level that was expected. However, they also both indicate there’s continued strong price growth throughout the country. FHFA reports all nine regions of the country still experienced double-digit appreciation. The Case-Shiller 20-City Index reveals all 20 metros had double-digit appreciation.

Why Haven’t We Seen the Deeper Deceleration Many Expected?

Experts had projected the supply of housing inventory would increase in the last half of 2021 and buyer demand would decrease, as it historically does later in the year. Since all pricing is subject to supply and demand, it seemed that appreciation would wane under those conditions.

Buyer demand, however, did not slow as much as expected, and the number of listings available for sale dropped instead of improved. The graph below uses data from realtor.com to show the number of available listings for sale each month, including the decline in listings at the end of the year.

What’s Going To Happen with Home Prices This Year? | MyKCM

Here are three reasons why the number of active listings didn’t increase as expected:

1. There hasn’t been a surge of foreclosures as the forbearance program comes to an end.

2. New construction slowed considerably because of supply chain challenges.

3. Many believed more sellers would put their houses on the market once the concerns about the pandemic began to ease. However, those concerns have not yet disappeared. A recent article published by com explains:

“Before the omicron variant of COVID-19 appeared on the scene, the 2021 housing market was rebounding healthily from previous waves of the pandemic and turned downright bullish as the end of the year approached. . . . And then the new omicron strain hit in November, followed by a December dip in new listings. Was this sudden drop due to omicron, or just the typical holiday season lull?”

No one knows for sure, but it does seem possible.

Bottom Line

Home price appreciation might slow (or decelerate) in 2022. However, based on supply and demand, you shouldn’t expect the deceleration to be swift or deep.

Print Details
Previous post
Next post
Two Ways Homebuyers Can Win in Today’s Market
When Is the Right Time To Sell [INFOGRAPHIC]

Office

Keller Williams Larchmont | Miracle Mile5150 Wilshire Blvd, Ground FloorLos Angeles, CA 90036
CalDRE License # 01207185
310.276.6656
info@barrentinegroup.com

Helpful resources

  • Home
  • Meet Our Team
  • Client Testimonials
  • Giving

Explore

  • Listings Search
  • Featured Listings
  • Buyer Resources
  • Seller Resources

Consumer Protection & Privacy

  • Accessibility
  • DMCA Compliance
For ADA assistance, please email compliance@placester.com. If you experience difficulty in accessing any part of this website, email us, and we will work with you to provide the information.
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2021/05/RedGroupLogo_2021-02%281%29.png
inception-app-prod/ODc3Y2E5ZGItYThiNi00Y2UzLTg5MmYtNWQ2Yzk5MzcyYmUx/content/2020/07/logo-2.png

© 2022 All rights reserved

Created with Placester

Sign in

Sign in with your email address

Sign In
Forgot your password?
Create an account
You have been successfully logged in
The page will reload automatically.
Go to the homepage
Sorry something went wrong
Login or password are incorrect. Please try again.
Try again

Sign Up

Sign Up
Already a User? Sign In
You have been successfully registered
Please check your email.
Go to the homepage
Sorry something went wrong
Please try again.
Try again

Reset password

Enter your email address

Reset password
Return to Log In
Reset password email has been sent.
Go to the homepage
Sorry something went wrong
Please try again.
Try again

Change password

Change password
Your password has been successfully reset.
Go to the homepage
Sorry something went wrong
Please try again.
Try again
Send
Succes! Your message was sent!
Thank you for visiting RED Real Estate Group. "Helping you make wise real estate decisions"
Back to homepage
Oops! Error occurred.
Please try again.
Back to form
Already a User? Sign In

Account verification in progress

Please wait...

Account Verified!

You may now log in into your account
Go to the homepage

Verify your email address

In order to log in to your account, you need to confirm your email address. Please check your inbox!
Go to the homepage

Share this listing

Copy Link