Is Home Price Appreciation Accelerating Again?

Dated: April 29 2021

Views: 27

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 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.

Bottom Line

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

Blog author image

Donna Sundin

Donna Sundin is the founder of RedSun REALTORSĀ®. Her vision to modernize the real estate experience without losing the personal attention of a boutique local brokerage is a living passion that drives....

Latest Blog Posts

Donna Sundin Brings Home National Honor

“Donna Sundin exemplifies the type of professional we designed this award for,” says Chad Golladay, Executive publisher of Brokerā˜…Agent™ Advisor. “A credit

Read More

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

Read More

Will the Housing Market Maintain Its Momentum?

Will the Housing Market Maintain Its Momentum?Last week’s Existing Home Sales Report from the National Association of Realtors (NAR) shows sales have dropped by 3.7%

Read More

4 Tips to Maximize the Sale of Your House

4 Tips to Maximize the Sale of Your HouseHomeowners ready to make a move are definitely in a great position to sell today. Housing inventory is incredibly low, driving up buyer competition. This

Read More