There were predictions that home prices would drop starting the fall of 2021 and continue to do so until 2022. While many looked forward to this scenario, major price indices show that prices continue to increase.
Here are the acceleration levels based on the following agencies:
S&P Case-Shiller: 18.8%
Federal Housing Finance Agency (FHFA): 17.6%
According to the graph, home prices have increased immensely from January to July. Prices may have leveled off around August, however they re-accelerated during December.
Keep in mind though, deceleration does not always mean depreciation. Deceleration means that the prices are still increasing, only at a slower pace. Depreciation, on the other hand, means that the prices have dropped lower than current values. Acceleration means that the prices increased at a greater year-over-year pace, compared to the previous month.
Waiting for prices to go lower before buying a home could be risky. It may be more beneficial to consult your trusted realtor, as mortgage rates continue to appreciate at double-digit levels for some time.
Contact the best real estate agent and real estate team: The Island Wide Team today!
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