In 2021, home prices skyrocketed nearly 19%, according to the S&P CoreLogic Case-Shiller home price index. And pros say we’re in for another year of price growth — but as for how much, pros diverge
Some predict double digit growth.
- Indeed, a report in January from Zillow noted that home values were expected to grow 16.4% between December 2021 and December 2022.
- Goldman Sachs, in October, forecast that home prices would rise 16% through 2022.
- Fannie Mae says home prices will climb 11.2% throughout this year, followed by a more modest increase in 2023.
Others have more modest predictions:
- The National Association of Realtors, which surveyed more than 20 top economic and housing experts, predicts housing prices are expected to climb 5.7% through the end of 2022.
- Realtor.com predicts a 2.9% increase in 2022. “I believe home price appreciation will normalize in 2022 and home price growth will begin to more closely track inflation,” says Bill Dallas, president of Finance of America Mortgage.
- As of February 2022, Redfin predicted home-price growth to slow at an annual rate of 7% by the end of 2022.
Holden Lewis, mortgage expert from NerdWallet, says, “One of the reasons home prices will continue to push upward in the short-term is because mortgage rates are falling temporarily.”
Click to read more predictions from Bill Dallas, president of Finance of America Mortgage, Jeff Ostrowski, analyst at Bankrate and Zillow economist Nicole Bachaud.
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