One of those experts, Zillow, revised their estimates for 2022, indicating that they expect the home price growth to climb to 21.6% by May 2022. Considering that back in December they were prognosticating a deceleration of 11% by the end of 2022, they are now forecasting – for the time being, that is – that 2022 will end up with home prices appreciating by 17.3%.
The factors contributing to the shift continue to be the shortage of available inventory and continued buyer demand. As of January 2022, the available inventory has fallen by 42% over the last 24 months. This is creating a very difficult and tempestuous real estate market, especially for buyers and in some cases sellers, since they are having difficulty in finding a property where they can downsize to.
In some cases, we have become too comfortable with the idea of homes appreciating by double digits in a 12-month period, when considering for the five years before this, homes on average would appreciate between 4 and 5%.
But not everyone agrees, as is the case with CoreLogic, which has come in predicting that home prices will appreciate just 3.5% year-over-year.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.