If you’re thinking of buying a home in today’s housing market, you may be wondering how strong your investment will be. You might be asking yourself: If I buy a home now, will it lose value? Or will it continue to appreciate going forward? The good news is, according to our industry analysts, home prices are not projected to decline. Here’s why.
With buyers still outweighing sellers, home prices are forecast to continue climbing in 2022, just at a slower or more moderate pace. Why the continued increase? It’s the simple law of supply and demand. When there are fewer items on the market than there are buyers, the competition for that item makes prices naturally rise.
Yes, the number of homes for sale today is expected to improve with more sellers getting ready to list their homes now that the winter is almost over. We’re certainly not out of the inventory woods yet — that’s why all projections show continued appreciation, but at a more moderate rate than what we’ve seen over the past year.
Bottom Line: It’s important to know that home prices are not projected to decline this year. Instead, they’re forecast to rise, just at a more moderate pace. That’s why it’s mission-critical to work with a trusted advisor to make sure you’re up to date on what’s happening with home price appreciation in your market, so you can make an informed decision about your next move
— Source: Keeping Current Matters.