If you’re wondering if home prices are going to fall down due to the cooldown in the housing market or a potential recession, here’s what you need to know. Not only are experts forecasting home prices will continue to appreciate nationwide this year, but most of them also actually increased their projections for home price appreciation from their original 2022 forecasts (shown in green in the chart below):
As the chart above shows, most sources adjusted up, and now call for more appreciation in 2022 than they originally projected this January. But why are experts so confident the housing market will see ongoing appreciation? It’s because of supply and demand in most markets. As Bankrate says:
“After all, supplies of homes for sale remain near record lows. And while a jump in mortgage rates has dampened demand somewhat, demand still outpaces supply, thanks to a combination of little new construction and strong household formation by large numbers of millennials.”
Knowing that experts forecast home prices will continue to appreciate in most markets and that they’ve actually increased their original projections for this year should help you answer the question: will home prices fall? Based on the latest forecasts, experts are confident prices will continue to appreciate this year, although at a more moderate rate than they did in 2021.
If you're concerned that home prices will fall you can relax knowing that most experts have raised their forecasts to say they’ll continue to appreciate in most markets this year. If you have questions about what’s happening with home prices in your local area, connect with a real estate professional.