Is Home Price Appreciation Accelerating Again?

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 AssociationFannie MaeFreddie 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.

About the Author

Prior to joining the Beshara Team, Chris assisted local companies as a freelance brand and web designer. Self-taught in Adobe Illustrator and in understanding the fundamentals of technology, he has helped create successful marketing campaigns.

Chris has a love of advertising, technology and social media “know how”. These traits, combined with his drive to find marketing solutions, allow him to use his innate creative vision to think “outside the box” and capture the attention of an audience.

These traits make Chris the perfect candidate to assist our sellers with winning marketing campaigns and ensure their home receives maximum exposure to the most amount of buyers, every time.

Chris, and his wife Amy, live in East Cobb with their two dogs, Rosco and Riley.