Have we reached max appreciation?
There has been a lot of talk about the market and whether it will crash.
No, you've heard the saying before... "We don't have a crystal ball and..."
But we are here to bring a different perspective and light to the conversation.
According to the latest "Home Price Expectation Survey" by Pulsenomics, which interviews over 100 economists, home prices are expected to continue appreciating over the next five years. It will just be at a lower rate than we've seen in the last couple of years. So no, we will not see a 15% increase in home equity in such a short period any time soon.
Many homeowners took advantage of the increase and refinanced their homes for a lower rate or pulled money out to use for lowering high-interest debt, home improvements, going back to school or paying for children's school, or even purchasing an investment property. (That's what we did)
You probably think, ok, interest rates are higher, and now people are gaining appreciation like it's going out of style. DO NOT panic. Your home is NOT expected to LOSE value.
We did see a massive gain in appreciation entering 2021 and then throughout that year. This may be the last year to sell and get top dollar for your home before the market begins to cool off, though.
Zillow stated that homes are worth 20.6% more than they were a year ago. Their forecast shows that we are close to the peak pace of appreciation, but that's very different from being at the peak price level. Prices are still expected to rise throughout the Spring, and as more buyers enter the market, we will continue to see inventory slowly increasing.
Last month, we saw a 22.9% increase in New Listings coming on the market. One key number we always want to keep an eye on is the month's supply of inventory. From last year to this year, we saw a 76.8% increase taking up to a whopping 1.1 months of inventory!
Inventory will be a struggle for longer than we expected, but many people are beginning to come into the market and submit contingent offers again. Many buyers knew they couldn't compete with a contingent offer and held off because of that. We are so happy they are coming back to the market.
Selling your home is a lot less scary in a market like this when you have an agent on your side with a plan YOU feel good about.
If you have more specific questions or want to talk more about selling your home, we would love the opportunity to sit down and create your plan.