Here’s what the experts have to say about home appreciation in 2022.

If you’ve been watching the real estate market at all in the last year, you know that home prices have skyrocketed. In the Greater Kalamazoo market, from August 2020 to August 2021, we saw nearly a 13% increase in home prices, which is more than three times the average of what we’ve seen for the last 25 years. Where does that leave us for next year? There are many different factors we can examine to find out whether appreciation will continue like this, so I’ve compiled a list of five expert 2022 appreciation forecasts for us to analyze:

• The home price expectation survey is comprised of over 100 economists, investment strategists, and housing market analysts, and they foresee a 5.1% appreciation next year.

• The National Association of Realtors (NAR) foresees a 4.4% appreciation next year.

• Fannie Mae foresees a 5.1% appreciation next year.

• Freddie Mac foresees a 5.3% appreciation next year.

• The Mortgage Bankers Association (MBA) foresees an 8.4% appreciation.
  

Obviously, all these economists believe that we’ll still see appreciation over the next year, but it’s certainly going to moderate a bit, which is likely a good thing for our market. It probably couldn’t sustain a continuing of the high levels of appreciation that we’ve seen for the past 12 months. It’s still an excellent time to buy a home because interest rates are still at near record lows. That means that though prices are still rising, your monthly mortgage payments are still going to be very reasonable.

This is a lot of overall information. If you’d like more detailed information about your specific situation or have any real estate questions, please give me a call or send an email. I’d love to have a conversation with you.