Home Prices Accelerate at All Price Levels

Yes, they are still climbing. National home prices increased 18% year over year according to the December 7, 2021 CoreLogic Home Price Index Report. The October 2021 HPI gain was the highest 12-month growth in the U.S. index since the series began in 1976. And I am pretty sure I have quoted similar "never seen such growth" data a number of times this year. Right? 

Rather than review more stats from the rear-view mirror, let's look forward. Where will we be on the appreciation graph a year from now? Will home prices keep rising? Most forecasts call for home price appreciation to moderate in 2022. The Home Price Expectation Survey, a survey of over 100 economists, investment strategists, and housing market analysts, calls for a 5.12% appreciation level next year. 

That's no reversal. It would represent solid appreciation from a national perspective. What about high-demand markets like those in Middle TN? Looking at the region’s numerous economic drivers and new corporate arrivals and expansions that I have commented on previously, I am bullish that Middle TN will overachieve. The continuation of these market factors: 
  • Low mortgage rates 
  • An ongoing inventory shortage 
  • The work-from-home trend 
...align with my anticipation of another double-digit growth environment in 2022. Click thru to the article published by the Home Buying Institute.

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