What Are Home Prices Expected to Do in 2022

These past two years we’ve seen home prices skyrocket to record heights. In April of 2022 the average single family home price in San Diego County reached $1,350,841. With talks of a recession, mortgage rate volatility, and the housing market beginning to cooldown what’s going to happen with home prices? Though prices have begun to slow month over month we’re still seeing price growth year over year. The latest projections for home price appreciation are still showing prices will continue to appreciate this year.

Why Are Home Still Appreciating?

Two reasons for this projected home price appreciation are there’s a lack of inventory and the demand for homes still outpaces supply. As Bankrate says:

“After all, supplies of homes for sale remain near record lows. And while a jump in mortgage rates has dampened demand somewhat, demand still outpaces supply, thanks to a combination of little new construction and strong household formation by large numbers of millennials”

December of 2021 San Diego saw a record low of 0.6 months of inventory. San Diego county has seen inventory begin to rise, but we’re still lacking the supply needed to fulfill the demand.

How This Impacts You

If you’re think about buying, good news is you now have more homes to choose from compared to the last year. And if you’re thinking if you buy a home it’s going to depreciate, you should know experts are still expecting homes to appreciate just not at the rate they were at before.

If you’re planning on selling and have owned your home for a while, youve most likely got a good amount of equity in your home. Although the market is cooling, San Diego has seen record levels of appreciation and you can still get a great price for your home. One thing to consider is with more homes on the market and days on market increasing, pricing your home right in this market will be important.

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