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The current housing market may have you wondering how strong your investment will be if you buy a house today. Perhaps you are wondering: will the value of my home drop if I buy it now? Can I expect it to appreciate in the future? According to experts, the good news is that home prices are not expected to drop. Let me explain.

With homebuyers still outweighing sellers, house prices are projected to increase in 2022, though at a somewhat slower or more moderate rate. How can this be? Supply and demand, of course. As long as there are fewer items on the market than there are buyers, the price will rise due to the competition.

Even though more sellers are getting ready to list their houses this winter, there’s still a lot of inventory left to fill. Therefore, the projections indicate continued appreciation but at a slower pace than we have seen during the past year.

Here are experts’ predictions for home prices in 2022:

What Everyone Wants To Know: Will Home Prices Decline in 2022?

How should we interpret this graph? Depreciation is not forecast by any prominent experts for 2022. The majority of them predict home prices will increase in 2022.

How will the housing market react in the coming year, according to some of the industry’s experts:

Hunter Housing Economics’ Brad Hunter explains:

“. . . the recent unsustainable rate of home price appreciation will slow sharply. . . . home prices will not decline. . . but they will simply rise at a more sustainable pace.”’s Danielle Hale concurs:

Price growth is expected to move back toward a normal range, but this is on top of recent high prices, . . . So prices will [still] hit new highs. . . . The pace of price growth is going to slow notably . . .”

How Does This Affect the Housing Market?

Expect that home price appreciation will continue, but it will not be the record-breaking 18 to almost 20% increase the market had over the past year. Overall, it’s imperative to remember that prices won’t rise as much as they did in 2021 – but they aren’t expected to decrease anytime soon.

What Does That Mean for You?

Since there are so few homes available to purchase and so many motivated buyers in the market, expect that home prices will continue to rise in 2022. A rise in home value in the future is a great indication you are making a sound decision to become a homeowner.

Bottom Line

In the upcoming year, home prices are not predicted to decline. Instead, they are predicted to rise at a slower rate. Let’s connect to know what’s happening with home price appreciation in our market. Considering your next move will be easier when you know what’s going on.

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