If you need assistance, please call 707-486-5400

Home Price Appreciation Is Skyrocketing in 2021. What About 2022?

Friday, September 10, 2021   /   by Nicole Solari

Home Price Appreciation Is Skyrocketing in 2021. What About 2022?

One of the major story lines over the last year is how well the residential real estate market performed. One key metric in the spotlight is home price appreciation. According to the latest indices, home prices are skyrocketing this year.


Here are the latest percentages showing the year-over-year increase in home price appreciation:







The dramatic increases are seen at every price point and in all regions of the country.


Increases Are Across Every Price Point


According to the latest Home Price Index from CoreLogic, each price range is seeing at least a 19% increase year-over-year:Home Price Appreciation Is Skyrocketing in 2021. What About 2022? | Keeping Current Matters


Increases Are Across Every Region in the Country


Every region in the country is experiencing at least a 14.9% increase in home price appreciation, according to the Federal Housing Finance Agency (FHFA):Home Price Appreciation Is Skyrocketing in 2021. What About 2022? | Keeping Current Matters


Increases Are Across Each of the Top 20 Metros in the Country


According to the U.S. National Home Price Index from S&P Case-Shiller, every major metro is seeing at least a 13.3% growth in prices (see graph below):Home Price Appreciation Is Skyrocketing in 2021. What About 2022? | Keeping Current Matters


What About Price Appreciation in 2022?


Prices are the result of the balance between supply and demand. The demand for single-family homes has been strong over the last 18 months. The supply of houses available for sale was near historic lows. However, there’s some good news on the supply side. Realtor.com reports:



“432,000 new listings hit the national housing market in August, an increase of 18,000 over last year.”


There will, however, still be a shortage of supply compared to demand in 2022. CoreLogic reveals:



“Given the widespread demand and considering the number of standalone homes built during the past decade, the single-family market is estimated to be undersupplied by 4.35 million units by 2022.”


Yet, most forecasts call for home price appreciation to moderate in 2022. The Home Price Expectation Survey, a survey of over 100 economists, investment strategists, and housing market analysts, calls for a 5.12% appreciation level next year. Here are the 2022 home appreciation forecasts from the four other major entities:



    1. The National Association of Realtors (NAR): 4.4%

    1. The Mortgage Bankers Association (MBA): 8.4%

    1. Fannie Mae: 5.1%

    1. Freddie Mac: 5.3%


Price appreciation is expected to slow in 2022 when compared to the record highs of 2021. However, it is still expected to be greater than the annual average of 4.1% over the last 25 years.


Bottom Line


If you owned a home over the past year, you’ve seen your household wealth grow substantially, and you’ll see another nice boost in 2022. If you’re thinking of buying, consider buying now as prices are forecast to continue increasing through at least next year.


  real estate, the solari group, level up realty, for buyers, for sellers, housing market updates, pricing

Level Up Realty
Nicole Solari
490 Chadbourne Road, Suite A123
Fairfield, CA 94534
707-486-5400
DRE# 02014153

IDX Content is provided via the Internet for consumers’ personal, non-commercial use. Variable Price’ indicates the seller is willing to entertain offers within a Listing Price Range. All measurements and all calculations of area are approximate. Information provided by Seller/Other sources, not verified by Broker. All interested persons should independently verify accuracy of information. Provided properties may or may not be listed by the office/agent presenting the information. IDX provided by Commissions Inc. Data last updated:November 30, 2022
This site powered by CINC: www.cincpro.com