Home Prices Expected to See Some Fall in 2022
Chances are, whether you know someone directly dealing with the current real estate market, you’ve heard about the historical largest 12-month gain in 45 years for home prices tracked from October 2020 to October 2021. Now, the question on everyone’s mind (especially first time homebuyers) will prices continue to sky rocket as demand increases and availability stays low?
There is no way to be certain, but there has been shared opinions and predictions about where the market will be heading come next month. And although there are some contradictory interpretations, there are a few markets that have a clearer direction based on the numbers leading up to the new year.
Want to jump when the market’s low?
The S&P CoreLogic Case-Shiller Home Price Indices are the leading measures of U.S. residential real estate prices, tracking changes in the value of residential real estate nationally. Although nationally the year over year market increase has gone up 18%, the monthly increase was 1.3% from September to October. The next month-to-month will probably be calculated to be even less than that between October and November.
States including New York, Louisiana, Alaska, and North Dakota had an increase less than the national average. CoreLogic released their Market Risk Indicator, sharing that a total of three cities are at high risk (50%-75%) and two cities have moderate risk (25%-50%) to have their prices decrease dramatically over the duration of 2022.
High Risk Towns
- Worcester, MA
- Springfield, MA
- Modesto, CA*
Moderate Risk Towns
- Merced, CA*
- Kalamazoo-Portage, MI
*SnapFi services in this state
If you were interested in one of these areas, try focusing your search in these towns as prices are expected to drop, especially during the winter time!
As for states where home prices are still above the national average in price growth, buying a house may be more costly but the value of the homes are going up. Here are the top five year-over-year growth states:
- Arizona – Up 28.9%
- Idaho – Up 28.7%
- Utah – Up 24.5%
- Florida – Up 24.4%
- Nevada – Up 24.2%
The major cities in these states are seeing even higher increases. Phoenix had an individual average increase of 30.5% and Las Vegas had a 24% average. If you’re interested in moving to the Phoenix area check out the top places to live in Arizona in 2022. If Las Vegas is more enticing, here’s a list of the top places in Nevada to move to!
Get pre-approved to catch these low prices!
Source: Yahoo News