Is Home Price Appreciation Accelerating Once Again?

Dated: April 29 2021

Views: 541

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

Bobby Leach

Bobby understands that buying or selling a home can be very stressful: it’s a life-changing experience. However, he also takes great pride in the relationships he builds and always works relentlessl....

Latest Blog Posts

There Are More Homes Available to Buy Now than There Were This Spring

There’s a lot of talk lately about how challenging it can be to find a home to buy. While housing inventory is still low, there are a few important things to understand about the supply

Read More

Mortgage Rates Projected to Increase Next Four Quarters

Below are the projected interest rates for the next four quarters that show interest rates increasing each quarter. If you're on the fence about selling and buying, this may be a good time to move

Read More

Fall Buyer Guide (Hot off the Press)

I hope you enjoy my Fall Buyer Guide. I have put endless hours into this and it is a great resource for first-time home buyers, or buyers looking to upsize or.

Read More