U.S. Home Price Forecast
According to Core Logic's Home Price Insights latest report, the National increase of home prices including destressed sales was up 20% February 2022 compared to February 2021.
They are forecasting an increase of 0.6% from February 2022 - March 2022 and 5% from February 2022 - February 2023.
 |
CoreLogicHome PricesPrices increased by 20% year over year in February 2022 making 12 months of double-digit gains. Annual price growth was recorded monthly for the past decade. The few homes available vs buyers is the reason for the rapid rise of home prices. The Corelogic forecast shows the year-to-year appreciation will slow to 5% by February 2023 partly due to the rise of interest rates. |
When the market normalizes it will be beneficial for first time home buyers, who have been stuck in stressful bidding wars.
A buyer will always know what their locked in rate is going to be and the monthly payment before signing a purchase agreement.
The example below shows the difference of an estimated monthly mortgage payment with a 2% increase in interest rate.
- loan amount $300,000
- down payment 20%
- conventional
- 30 yr fixed
- property taxes $6,000
- Homeowners Ins. $300 annual
- Interest rate 3.5%
Estimated monthly payment $1,602.71
Interest rate 5.5% payment $1,887.69
Difference +$284.98
Ask many questions when buying a home. If the rise of rates, will push you out of one price point you can always find your dream home at a lower price point or a different loan type you will qualify for!
