• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Discover Contra Costa

Discover Contra Costa

with Noelle Cummings, REALTOR®/REALTIST®

  • Home
  • Buyers
    • Advanced Search
    • New Construction Home Search
    • Guidebook for Buyers
    • User Signup
    • User Login
  • Sellers
    • Home Valuation
    • Guidebook for Sellers
  • Communities
  • The Key to Your Home Blog
    • Buyer Tips
    • Seller Tips
    • Homeowner Tips
    • Market Updates
    • Real Estate News
  • Contact Noelle

Home Price Appreciation Is Skyrocketing in 2021.

11/08/2021 by Noelle Cummings Leave a Comment

What About 2022?

One of the major storylines over the last year is how well the residential real estate market performed. One key metric in the spotlight is home price appreciation. According to the latest indices, home prices are skyrocketing this year.

Here are the latest percentages showing the year-over-year increase in home price appreciation:

  • The House Price Index (HPI) from the Federal Housing Finance Agency (FHFA): 18.8%
  • The S. National Home Price Index from S&P Case-Shiller: 18.6%
  • The Home Price Insights Report from CoreLogic: 18%

The dramatic increases are seen at every price point and in all regions of the country.

Increases Are Across Every Price Point

According to the latest Home Price Index from CoreLogic, each price range is seeing at least a 19% increase year-over-year:

Home Price Appreciation Is Skyrocketing in 2021. What About 2022? | Keeping Current Matters

Increases Are Across Every Region in the Country

Every region in the country is experiencing at least a 14.9% increase in home price appreciation, according to the Federal Housing Finance Agency (FHFA):

Home Price Appreciation Is Skyrocketing in 2021. What About 2022? | Keeping Current Matters

Increases Are Across Each of the Top 20 Metros in the Country

According to the U.S. National Home Price Index from S&P Case-Shiller, every major metro is seeing at least a 13.3% growth in prices (see graph below):

Home Price Appreciation Is Skyrocketing in 2021. What About 2022? | Keeping Current Matters

What About Price Appreciation in 2022?

Prices are the result of the balance between supply and demand. The demand for single-family homes has been strong over the last 18 months. The supply of houses available for sale was near historic lows. However, there’s some good news on the supply side. Realtor.com reports:

432,000 new listings hit the national housing market in August, an increase of 18,000 over last year.”

There will, however, still be a shortage of supply compared to demand in 2022. CoreLogic reveals:

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.”

Yet, most forecasts call for home price appreciation to moderate in 2022. For example, the Home Price Expectation Survey, a survey of over 100 economists, investment strategists, and housing market analysts, calls for a 5.12% appreciation level next year. Here are the 2022 home appreciation forecasts from the four other major entities:

  1. The National Association of Realtors (NAR): 4.4%
  2. The Mortgage Bankers Association (MBA): 8.4%
  3. Fannie Mae: 5.1%
  4. Freddie Mac: 5.3%

Price appreciation is expected to slow in 2022 when compared to the record highs of 2021. However, it is still likely to be greater than the annual average of 4.1% over the last 25 years.

Bottom Line

If you owned a home over the past year, you’ve seen your household wealth grow substantially, and you’ll see another nice boost in 2022. Alternatively, if you’re thinking of buying, consider buying now as prices are forecast to continue increasing through at least next year.

  • Share on Twitter Share on Twitter
  • Share on Facebook Share on Facebook
  • Share on Pinterest Share on Pinterest
  • Share on LinkedIn Share on LinkedIn
  • Share via Email Share via Email

Filed Under: Buyer Tips, Real Estate News, Seller Tips

About Noelle Cummings

Raised in Walnut Creek, Noelle Cummings understands and appreciates the many unique benefits of living in the Bay Area - with its unmatched beauty, culture, shopping, and marvelous restaurants!

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Call Now:

925-768-3617

Connect with Me:

  • Facebook
  • Instagram
  • LinkedIn
  • YouTube

Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox, every month.

I don’t spam! Read my privacy policy for more info.

Please check your inbox or spam folder to confirm your subscription. Thanks!

Categories

  • Buyer Tips
  • Homeowner Tips
  • Market Updates
  • Real Estate News
  • Seller Tips

Footer

Noelle Cummings
Realtor®/Realtist® | Cal DRE #01333246
Cell: 925-768-3617

Connect with me:

  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest
  • YouTube

Contact Me:

Thank you for reaching out! I will be in touch just as soon as possible. If you'd like to reach me right away, feel free to call or text me at 925-768-3617. I look forward to talking to you soon!

Copyright © 2022 · Agent Focused Pro by Winning Agent · Log in

Realty One Group ELITE – Walnut Creek

200 Pringle Avenue, Suite 100 | Walnut Creek, CA 94596

925-978-1100

CA DRE# 01931601

 

Privacy Policy