Will Memphis Home Prices Rise? Many analysts projected home price appreciation would slow dramatically in the fall of 2021 and then soften throughout 2022. So far, that hasn’t happened nationally or in the Memphis TN area. The major price indices show double-digit price appreciation. Reports on year-over-year price appreciation for December:
- Federal Housing Finance Agency✎ EditSign (FHFA): 17.6%
- S&P Case-Shiller✎ EditSign: 18.8%
- CoreLogic: 18.5%
Will Memphis Home Prices Rise
To show NO signs of softening, the graph shows all three indices for each month of 2021.
So will Memphis home prices rise? As the graph shows, last year home price appreciation accelerated dramatically from January to July. Then, it began to decelerate in August when prices appreciated at a slower pace, but it didn’t decline. Many thought that would be the beginning of a rapid slowdown in the level of home price appreciation, but as the data shows, that wasn’t the case. Instead, prices leveled off for a few months before two of the three indices saw appreciation re-accelerate again in December.
To clarify, deceleration is not the same as depreciation. Acceleration means prices rise at a greater year-over-year pace than the previous month. Deceleration means home values continue to rise but at a slower pace of year-over-year appreciation. Depreciation means prices drop below current values. No one is forecasting that to happen.
In fact, Selma Hepp, Deputy Chief Economist at CoreLogic, explains:
“After some signs of slowing home price growth . . . monthly price growth re-accelerated again, indicating home buyers have not yet thrown in the towel.”
Home Buyer or Home Seller?
Whether you’re a first-time home buyer or someone looking to sell your current Memphis house and buy a Memphis home for sale, waiting to decide what to do will cost you in two ways:
- Mortgage rates are forecast to rise this year.
- Home prices should continue to appreciate at double-digit levels for some time.
If you wait, rising mortgage rates and high home price appreciation will have a dramatic impact on your monthly mortgage payment. Your house payment will increase by waiting. MB Realty in Memphis TN can help with that decision. And, put you in touch with a great mortgage loan officer. See more at www.mbrealtymemphis.com
So, will Memphis TN Home Prices Rise? As Len Kiefer, Deputy Chief Economist at Freddie Mac puts it:
“If you’re thinking about waiting until next year and that maybe rates are higher, but you’ll get a deal on prices – well that’s risky. It may be more advantageous to purchase this year relative to waiting until 2023 at this time.”