Leave a Message

Thank you for your message. We will be in touch with you shortly.

Will Home Prices Fall This Year? Here’s What Experts Say.

Real Estate

Will Home Prices Fall This Year? Here’s What Experts Say.
Many people are wondering: will home prices fall this year? Whether you’re a potential homebuyer, seller, or both, the answer to this question matters to you. Let’s break down what’s happening with home prices, where experts say they’re headed, and how this impacts your homeownership goals.
 

What’s Happening with Home Prices? 

 
Home prices have seen 121 consecutive months of year-over-year increases. CoreLogic says:
 

“Price appreciation averaged 15% for the full year of 2021, up from the 2020 full year average of 6%.”

So why are prices climbing so much? It’s because there are more buyers than there are homes for sale. This imbalance is expected to maintain that upward pressure on home prices because homes for sale are a hot commodity in today’s low-inventory housing market.
 

Where Do Experts Say Prices Will Go from Here?

 
Experts say the housing market isn’t set up for a price decline due to that ongoing imbalance between supply and demand. In the latest home price forecasts for 2022, they’re calling for an ongoing appreciation throughout the year (see graph below):
 
 
While the experts are forecasting more moderate price appreciation, the 2022 projections show price gains will remain strong throughout this year. First American explains it like this:
 

“While house price growth is expected to moderate from the rapid pace of 2021, strong home buyer demand against a backdrop of historically tight inventory of homes for sale will likely keep appreciation positive in the coming year.”

What Does That Mean for You?

 
The biggest takeaway is that none of the experts are projecting depreciation. If you’re a homeowner thinking about selling, the higher price appreciation over the last two years has been great for your home’s value, but it’s also something you should factor in when planning your next steps. If you are also buying a home after selling your current house, you shouldn’t wait for prices to fall. Waiting will only cost you more in the long run because climbing mortgage rates and rising home prices will have an impact on your next home purchase. Freddie Mac says:
 

“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.”

Bottom Line

 
If you’re thinking of selling to move up, you shouldn’t wait for prices to fall. Experts say prices will continue to appreciate this year. That means if you’re ready, buying your next home before prices climb further may make the most financial sense. Let’s connect to begin the process of selling your current home and looking for your next one before prices rise higher.
 

Recent Blog Posts

Stay up to date on the latest real estate trends.

The Utility Questions That Can Make or Break a Los Altos Hills Home Sale

Learn how septic systems, sewer access, water providers, and utility inspections can affect a Los Altos Hills home sale and how sellers can prepare for a smoother escr… Read more
What Can You Actually Build on One Acre in Los Altos Hills?

Learn what you can build on one acre in Los Altos Hills, including LUF, MDA, slope, septic, sewer, pathway easements, and key due diligence tips.

Silicon Valley Newsletter - July 2026

Explore the latest Silicon Valley real estate market update for June. Discover home prices, inventory, buyer demand, and housing trends across San Mateo, Santa Clara, … Read more
Moving to Mountain View? A Local Homebuyer's Guide to Living in One of Silicon Valley's Most Desirable Communities

Planning to move to Mountain View? Discover the best neighborhoods, schools, parks, commuting options, and local lifestyle in this complete Mountain View relocation gu… Read more
Water-Smart Landscaping for Los Altos Hills Estates

Learn how water-smart landscaping can increase your Los Altos Hills home's value with drought-tolerant plants, smart irrigation, fire-wise design, and sustainable luxu… Read more
How the Sand Hill Road Effect Shapes Menlo Park Home Values

Discover how Sand Hill Road shapes Menlo Park home values. Learn how venture capital, luxury neighborhoods, buyer demand, and Silicon Valley drive real estate prices.

View All

LET'S TALK

You’ve got questions and we can’t wait to answer them.

Contact Us
Get in Touch
Contact Details

Illuminate Properties

(650) 520-7675

[email protected]



228 Hamilton Ave #300

Palo Alto, CA 94301