businesscardbusinesscardbusinesscardbusinesscard
    • HOME
    • SELL WITH PAUL
    • BUY WITH PAUL
      • Home Finder
      • SOLANO COUNTY
        • Benicia
        • Dixon
        • Eastridge Estate
        • Fairfield
        • Green Valley
          • New Green Valley
          • Old Green Valley
        • Hiddenbrooke
        • Mare Island
        • Rancho Solano
        • Rio Vista
        • Suisun City
        • Suisun Valley
        • Vacaville
        • Vallejo
      • NAPA COUNTY
        • American Canyon
        • Angwin
        • Calistoga
        • Deer Park
        • Napa City
        • Napa Valley
        • Oakville
        • Rutherford
        • St. Helena
        • Yountville
    • Marketing
    • COMMUNITIES
    • HOMES VALUES
    • ABOUT
    • CONTACT US
    • GET QUALIFIED
    • FRONT PORCH
      The Perks of Owning More Than One Home
      March 1, 2022
      How To Navigate a Market Where Multiple Offers Is the New Normal
      March 15, 2022

      Are Home Prices Continuing To Rise?

      Many analysts projected home price appreciation would slow dramatically in the fall of 2021 and then continue to soften throughout 2022. So far, that hasn’t happened. The major price indices are all revealing ongoing double-digit price appreciation. Here’s a look at their reports on year-over-year price appreciation for December:

      • Federal Housing Finance Agency (FHFA): 17.6%
      • S&P Case-Shiller: 18.8%
      • CoreLogic: 18.5%

      To show that they’re not seeing signs of softening, here’s a graph that gives the progression of all three indices for each month of 2021.

      As the graph above reveals, last year, home price appreciation accelerated dramatically from January to July according to all three indices. Then, it began to decelerate in August when prices appreciated at a slower pace, but it didn’t decline. Many thought that would be the beginning of a rapid slowdown in the level of home price appreciation, but as the data shows, that wasn’t the case. Instead, prices began to level off for a few months before two of the three indices saw appreciation re-accelerate again in December.

      To clarify, deceleration is not the same as depreciation. Acceleration means prices rise at a greater year-over-year pace than the previous month. Deceleration means home values continue to rise but at a slower pace of year-over-year appreciation. Depreciation means prices drop below current values. No one is forecasting that to happen.

      In fact, the FHFA revealed that price appreciation accelerated in December in six of the nine regions it tracks. Case Shiller showed that appreciation accelerated in 15 of the 20 metros they report on. As Selma Hepp, Deputy Chief Economist at CoreLogic, explains:

      “After some signs of slowing home price growth . . . monthly price growth re-accelerated again, indicating home buyers have not yet thrown in the towel.”

      What Does This Mean for You?

      Whether you’re a first-time purchaser or someone looking to sell your current house and buy a home that better fits your needs, waiting to decide what to do will cost you in two ways:

      1. Mortgage rates are forecast to rise this year.
      2. Home prices should continue to appreciate at double-digit levels for some time.

      If you wait, rising mortgage rates and high home price appreciation will have a dramatic impact on your monthly mortgage payment.

      Bottom Line

      Maybe the best thing to do is listen to the advice of Len Kiefer, Deputy Chief Economist at Freddie Mac:

      “If you’re thinking about waiting until next year and that maybe rates are higher, but you’ll get a deal on prices – well that’s risky. It may be more advantageous to purchase this year relative to waiting until 2023 at this time.”

      Share

      Related posts

      Price-your-Home-Right-1
      January 23, 2023

      Want To Sell Your House? Price It Right.


      Read more
      Housing-Market-Featured-Image
      January 17, 2023

      What Past Recessions Tell Us About the Housing Market


      Read more
      What-Experts-Are-Saying-About-the-2023-Housing-Market
      January 9, 2023

      What Experts Are Saying About the 2023 Housing Market?


      Read more

      Let’s Connect

      I am Passionate About Real Estate
      Paul Ponitkoff REALTOR
      DRE LIC# 01814133

      Serving Solano and Napa, Counties with full service real estate +1 707.344.8115

      My Passion…

      • Professional video and drone services for every home
      • Maximum value guaranteed
      • A website created just for your property
      • Access to over 128,000+ agents in 110 different countnries
      main-home-slider-two
      main-home-slider-three

      main-home-slider-one
      Featured in Napa Valley California
      Homes in Fairfield California

      Homes in Napa California
      Estate Home With Spears Team

      2020 Copyright paulponitkoff.com website by
      ElitePartnerSolutions.com
      866.863.5251