Is Home Price Appreciation Accelerating Again

Dated: April 29 2021

Views: 113

Is Home Price Appreciation Accelerating Again?

Is Home Price Appreciation Accelerating Again? | MyKCM

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:Is Home Price Appreciation Accelerating Again? | MyKCMEven 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.

Bottom Line

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

Want to Advertise on this Site?

Latest Blog Posts

Your House Could Be The Oasis In An Inventory Desert

Your House Could Be the Oasis in an Inventory DesertHomebuyers are flooding the housing market right now to take advantage of record-low mortgage rates. Many have a sense of urgency to find a

Read More

Its Not Too Late To Apply For Forbearance

It’s Not Too Late To Apply For ForbearanceOver the past year, the pandemic made it challenging for some homeowners to make their mortgage payments. Thankfully, the government initiated a 

Read More

3 Graphs Showing Why You Should Sell Your House Now

3 Graphs Showing Why You Should Sell Your House NowThere’s no doubt that 2021 is the year of the seller when it comes to the housing market. If you’re a homeowner thinking of moving to

Read More

Why Waiting To Buy A Home Could Cost You A Small Fortune

Why Waiting to Buy a Home Could Cost You a Small FortuneMany people are sitting on the fence trying to decide if now’s the time to buy a home. Some are renters who have a strong desire to

Read More