Is Home Price Appreciation Accelerating Again?

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At the beginning of the year, industry forecasts called for home price appreciation to slow to about half of the double-digit increase we saw last year. The thinking was that inventory would increase from record-low levels and put an end to the bidding wars that have driven home prices up over the past twelve months. However, that increase in inventory has yet to materialize. The National Association of Realtors (NAR) reports that there are currently 410,000 fewer single-family homes available for sale than there were at this time last year.

This has forced those who made appreciation forecasts this past January to amend those projections. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, the National Association of Realtors, and Zelman & Associates have all adjusted their numbers upward after reviewing first quarter housing data. Here are their original forecasts and their newly updated projections:

The National Association of Realtors (NAR) reports that there are currently 410,000 fewer single-family homes available for sale than there were at this time last year.

he Mortgage Bankers Association, Fannie Mae, Freddie Mac, the National Association of Realtors, and Zelman & Associates

Even with the increases, the updated projections still don’t reach the above 10% appreciation levels of 2020. However, a jump in the average projection from 5.3% to 7.7% after just one quarter is substantial. Demand will remain strong, so future appreciation will be determined by how quickly listing inventory makes its way to the market.

Entering 2021, there was some speculation that we might see price appreciation slow dramatically this year. Today, experts believe that won’t be the case. Home values will remain strong throughout the year.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Diane Casey Luong does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Diane Casey Luong will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

 Is Home Price Appreciation Accelerating Again?

Perspective Matters When Selling Your House Today

It shows supply this year has surpassed 2021 levels by over 30%. But the further back you look, the more you’ll understand the big picture. Compared to 2020, we’re just barely above the level of inventory we saw then. And if you go all the way back to 2019, the last normal year in real estate, we’re roughly 40% below the housing supply we had at that time.

Why does this matter to you? When inventory is low, there is still demand for your house because there just aren’t enough homes available for sale.

169 Klondike Rd, Dudley, MA 01571

Custom designed & built w/ incredible attention to detail & hardwood throughout. Almost a 1-acre private parcel across from Pierpont Meadow Pond you’ll enjoy water views from many locations in the property. Easy one level living w/ the opportunity to finish the 2nd floor, basement or above the detached garage. The main floor offers a private main bedroom w/ walk in closet & bath. Two additional, generous sized bedrooms at the opposite side of the property with 2nd full bath. Open kitchen, dining room and living room with beautiful stone fireplace and plenty of windows/glass doors to let in natural light. The 2nd floor is complete with windows, skylights, electric, rough plumbing & a/c. The yard has welcoming entertaining space with an oversized deck, in-ground saltwater pool, patio & stone fire pit. Looking for work at home space, check out the 2nd floor of the detached garage, perfect for office or rec. room. Laundry on main level and Buderus heating system.

A Window of Opportunity for Homebuyers

The housing market is undergoing a shift because of higher mortgage rates, but the market is still strong. If you’ve been looking to buy a home over the last couple of years and it felt impossible to do, now may be your opportunity.

Contact Diane

Diane Casey Luong

Diane Casey Luong

Realtor

Realtor at RE/MAX Advantage I, Buying Real Estate Agent, Seller Real Estate Agent, Listing Real Estate Agent

DIANE-CASEY-LUONG-BUYERS-GUIDE

You may be wondering if now is a good time to buy a home…or if interest rates are projected to rise or fall. The free eGuide above will answer many of your questions and likely bring up a few things you didn’t even know you should consider when buying a home.

It’s difficult to know when is the best time to sell, or how to get the most money for your house, but you don’t need to go through the process alone.

You may be wondering if prices are projected to rise or fall…or how much competition you may be facing in your market. The free eGuide below will answer many of your questions and likely bring up a few things you haven’t even thought about yet.

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2015

RE/MAX 100% Club
Diane achieved levels of productivity in 2015 that were more than double the industry average with commission levels of $100,000 – $249,999

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2016

RE/MAX 100% Club
Diane achieved levels of productivity in 2016 that were more than double the industry average with commission levels of $100,000 – $249,999

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2017

RE/MAX 100% Club
Diane achieved levels of productivity in 2017 that were more than double the industry average with commission levels of $100,000 – $249,999

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2018

RE/MAX 100% Club
Diane achieved levels of productivity in 2018 that were more than double the industry average with commission levels of $100,000 – $249,999

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2019

RE/MAX 100% Club
Diane achieved levels of productivity in 2019 that were more than double the industry average with commission levels of $100,000 – $249,999

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2016

Realtor™ Association of Central Massachusetts
2019 Top Producers, Ruby Level

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2019

Realtor™ Association of Central Massachusetts
2019 Top Producers, Ruby Level

Working with Diane was an absolute pleasure and joy.

She was incredibly professional yet still warm and personable. I always felt that Diane had my best interests in mind; she never pressured me into anything and always worked to get me all the information I needed before making a decision.

Diane had great knowledge of the housing market in the area and the pros and cons to look for when looking at homes.

During the finalization process, Diane was able to refer me to an excellent home inspector and other individuals necessary for the closing.

I wholeheartedly recommend Diane and would use her again if I am lucky enough to buy another home or sell my own.

Bought a Townhouse home with Diane in 2016 in Worcester, MA.