With housing prices on the rise, you might be wondering how it will affect your investment. If you buy a house in Arizona now, how much does it go down in value? Home prices are not expected to decline going forward, but some experts still think they might. According to real estate experts, the good news is that home prices are not projected to decrease. Here's why.
Given the number of buyers vs. sellers, it is expected that home prices will continue climbing at a slower rate or with moderate growth in 2022
As the housing market continues to heat up, it is becoming more difficult for buyers to find affordable homes. This shortage in inventory has driven up prices and created an intense bidding war in some cases.
Why is there ongoing growth? It's the law of supply & demand. When there are fewer goods available than buyers, competition for items increases naturally.
It's important to note that while more sellers are expected to list their homes this winter, we're still not out of the woods yet regarding inventory. Based on the projections we've seen, we expect the appreciation rate to be more moderate than what we experienced this year.
What Does This Mean for the future Arizona Housing Market?
Although it is expected that home prices will continue to increase, the yearly increase in price isn't likely to be as high this year at 18-20%
It's important to note that while Arizona prices may rise in the future, they won't skyrocket as they did in 2021. However, experts feel it's unlikely that many of them will drop anytime soon.
What Does That Mean for Arizona?
It can be hard to make sound real estate financial decisions when the housing market is rising. The amount of demand and the lack of supply means that it's likely that homes will become even more expensive in 2022. While it feels good that your investment is paying off, now may not be the best time to avoid jumping into homeownership.
Have you taken the time to consider the national housing market? Home prices are not projected to fall in 2022, so don't let your guard down. Home prices are forecasted to rise over the next few years, but at a lower rate than in recent years. Let's discuss what will happen and how it might affect your decision-making process.