The year 2020 has been hard on us all, even as we prepare to move past 2021. There are a million questions and very few answer for them and that is just in real estate. One of those questions is all about how the market has performed. People want to know, home price appreciation 2021 vs 2022.
Increases A Plenty
The latest indices indicate home prices are skyrocketing, but what is the home price appreciation 2021 vs 2022? We have seen dramatic increases at every price point. In fact, many of these increases can be seen in all regions of the United States.
The House Price Index from the Federal Housing Finance Agency points to an 18.8% increase year over year. The S. National Home Price Index from S&P Case-Shiller indicates an 18.6% increase, and the Home Price Insights Report from CoreLogic indicates an 18% increase.
It is clear to see that there is, at the very least, an 18% increase that we can rely on as far as home price appreciation 2021 vs 2022 goes.
Regional Home Price Appreciation Increases
There is not a single region in the US that has not seen an increase in appreciation year over year in the second quarter of 2021. The west coast and the upper east coast have both seen the highest increases.
You can see on the map above that the West Coast increases 20.1%, the Mountain region went up 22.9%, the West North Central region 14.9%, East North Central region 15.7%, Middle Atlantic 17.1%, New England 20.4%, South Atlantic 17.3%, East South Central 16.4%, and the West South Central region 15%. This information comes from the Federal Housing Finance Agency.
Top 20 Metros in the US for Home Price Appreciation
The U.S. National Home Price Index has also compared home price appreciation 2021 vs 2022. The organization has found out which metros have the highest increase percentage year over year. The goal is always to help people make a better-informed decision with their real estate investments.
The biggest increase in a single metro area is Phoenix, Arizona with a massive 29.3% increase. San Diego, California is next with a 27.1% increase, Seattle, Washington with a 25.0% increase, and San Francisco, California with a 21.9% increase. The 5th spot goes to Tampa, Florida with a 21.5% increase.
Home Price Appreciation in 2022
We have seen a major boom in home price appreciation 2021 vs 2022. We may not have the ability to give a solid answer, but we can give estimates based on past occurrences. For example, 2021 saw a major uptick in home price appreciation thanks to the historic low supply we had all year.
We saw strong demand for single family homes over the last 18 months, but nowhere near enough homes for them all. However, Realtor.com reports that, “432,000 new listings hit the national housing market in August, an increase of 18,000 over last year.” That is a sign that tells us 2022 may be quite different.
There still may be a shortage given the high demand. Yet forecasts are telling us that the home price appreciation in 2022 will be miniscule, coming in at 5.12% on average. For comparison, we have seen an average of 4.1% increases year over year for the last 25 years.
While this feels like the market is dropping significantly, we can see that it is actually returning to a normal state.
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