Mortgage

Vital slowdown in property value development forecast for 2022

Nationwide house price growth marks a massive slowdown in the next 12 months as the impact of the pandemic-induced changes in housing patterns wear off, CoreLogic reported.

Remote working resulted in people looking for apartments further away from their offices, often in the suburbs or suburbs. This intensified competition for the few properties that were on the market and drove up prices.

The values ​​are expected to rise by just under 0.1% between September and October and by 1.9% by September 2022, according to the latest Home Price Index report from CoreLogic. This comes after an 18% annual growth and a 1.1% month-to-month increase for September.

"The pandemic has spurred potential buyers to seek single-family homes in lower-density communities such as suburbs and outskirts," said Frank Martell, President and CEO of CoreLogic, in a press release. "On the way into 2022, we expect some moderation in the current pattern of flight from urban cores as the pandemic subsides."

In 10 of the major markets identified by CoreLogic, two – Houston and Phoenix – are expected to see price declines over the next 12 months. Properties in these two markets are currently considered overvalued.

Prices in Phoenix are expected to fall 0.6% through September 2022. They were up 31% in the past 12 months, the largest percentage increase among those 10 markets. CoreLogic is forecasting a 1.6% decrease in Houston over the next 12 months after an increase of 14.9% through September this year. Houston was hit hard by the collapse of the oil industry and the recent hurricane season, CoreLogic said.

On the flip side, price growth in San Diego – where CoreLogic says values ​​in the market are normal – is expected to hit 6.5% by next September, making this market relatively hot for the future. House prices in the Miami market, classified by CoreLogic as overvalued, will rise 4%.

According to CoreLogic's Market Risk Indicator, Springfield, Massachusetts and Merced, California are the two cities with a very high probability (over 70%) of a price decline by September 2022. The other metropolitan areas have a high probability (between 50 and 75%) one Reading, Pennsylvania; Worcester, Massachusetts; and Norwich New London, Connecticut.

Related Articles