What Everyone Wants to Know: Will Home Prices Decline in 2022?

If you’re thinking of buying a home in today’s housing market, you may be wondering how strong your investment will be. You might be asking yourself: if I buy a home now, will it lose value? Or will it continue to appreciate going forward? The good news is, according to experts, home prices are not projected to decline. Here’s why.

With buyers still outweighing sellers, home prices are forecast to continue climbing in 2022, just at a slower or more moderate pace. Why the continued increase? It’s the simple law of supply and demand. When there are fewer items on the market than there are buyers, the competition for that item makes prices naturally rise.

And while the number of homes for sale today is expected to improve with more sellers getting ready to list their houses this spring, we’re certainly not out of the inventory woods yet. Thus, the projections show continued appreciation, but at a more moderate rate than what we’ve seen over the past year.

Here’s a look at the latest 2022 expert forecasts on home price appreciation:

What’s the biggest takeaway from this graph? None of the major experts are projecting depreciation in 2022. They’re all showing an increase in home prices this year.

And here’s what some of the industry’s experts say about how that will play out in the housing market this year:

Brad Hunter of Hunter Housing Economics explains:

“. . . the recent unsustainable rate of home price appreciation will slow sharply. . . . home prices will not decline. . . but they will simply rise at a more sustainable pace.”

Danielle Hale from realtor.com agrees:

“Price growth is expected to move back toward a normal range, but this is on top of recent high prices, . . . So prices will [still] hit new highs. . . . The pace of price growth is going to slow notably . . . ”

What Does This Mean for the Housing Market?

While home price appreciation is expected to continue, it isn’t projected to be the record-breaking 18 to almost 20% increase the market saw over the past 12 months. Overall, it’s important to note that price increases won’t be as monumental as they were in 2021 – but they certainly won’t decline anytime soon.

What Does That Mean for You?

With motivated buyers in the market and so few homes available to purchase, the imbalance of supply and demand will continue to put upward pressure on home prices in 2022. And when home price appreciation is in the forecast, that’s a clear indication your investment in homeownership is a sound one.

Bottom Line

It’s important to know that home prices are not projected to decline in the new year. Instead, they’re forecast to rise, just at a more moderate pace. Exploring Dunwoody homes for sale on our site will give you an idea of today’s market prices. Let’s connect to make sure you’re up to date on what’s happening with home price appreciation in our market, so you can make an informed decision about your next move.

Top 10 Home Design Trends to Take into 2022

The pandemic has changed the way many of us think about our home spaces. Between Tiktok and Instagram, the stream of ideas and inspiration is endless. From trendy plants to new kitchen cabinets, many of us have replaced small items or renovated entire rooms from floor to ceiling. With the year ending, it’s no wonder we want to revisit some of the best home décor trends of 2021:

Detail in the ceilings

The ceiling or the “fifth wall” became the show stealer this year. Many opted for neutral-colored walls and a characterized ceiling. If you’re looking to update your master bedroom or living area, try adding wood detailing or beams.

Home offices were light and neutral

A lot more people are working from home these days and we can officially say that calming colors, smooth textures and bright lighting were the necessary component this year for offices.

Thank Tiktok for the “cottagecore” trend

What the internet has named “cottagecore”, is the accumulation of warm colors, soft textures and lived-in pieces like repurposed coffee tables and bookcases. If you’re looking to bring some cottagecore to your home, try incorporating floral printed pillows and repurposed furniture.

Vintage furniture is here to stay

If you’re looking for a unique twist to your home there’s no better place to look than your local flea markets. Last year, Chairish – a vintage retailer – had a 60% increase in sales, and Statista reported that the “furniture resale market” will most likely see an increase of 70% by the year 2025. Vintage isn’t going anywhere any time soon, so next time you want to add some bookends or a new armchair for the living room, try opting for a vintage piece.

Maximalist is the new minimalism

“Maximalist design is all about expressing your individuality and unique perspective. Maximalists don’t care what the ‘Joneses will think; they design for their own joy,” said award winning designer, Courtney McLeod. If you have an eye for unique design, try incorporating a colorful couch, bold lamps and fun lighting to bring a little maximalist to your life and into your home.

Bringing the outdoors inside

The old farmhouse style of plants that have taken over our houses for the last decade are slowly going out of fashion. Instead, they are being replaced with a “less is more” approach that balances between trendy and functional. If you’re looking to up your plant game, try incorporating potting options that are sculptural and have a design life of their own.

Shaker cabinets have been all the rage

If you still have the early 2000s, cherry or walnut cabinets that you are desperate to get rid of, look no further than shaker cabinets. Shaker cabinets are narrower than your typical kitchen option and feature more streamlined edges. It’s a classic style that isn’t going anywhere soon, so you can invest your money without feeling wasteful.

Modern country design has been the best of both worlds

This is for the homeowners that can’t decide what home décor is for you. The combination of modern and southern lifestyle has taken on a life of its own. It’s an idyllic classic that meshes warm, homey vibes with neutral tones and simple lines.

Bringing vacation home

There’s nothing worse than walking into a friend’s bathroom and seeing truly awful stylings of anchors, starfish and seashell-shaped towel hooks. When we say coastal décor trend, we are thinking more on the side of open and airy décor that invokes the feeling of sitting near the seaside.

Open shelving provided a fresh kitchen style

Raise your hand if you have loathed putting away the dishes simply because of the opening and closing of the cabinets. Turns out there’s a solution that just so happens to be a trending décor option. Open shelving in the kitchen has been noted by HGTV as a trend that “doesn’t seem to be showing any signs of slowing down.” If you aren’t sold on the idea, HGTV suggests taking the doors off your cabinets to “ease” into it.

Source: TheList.com

Advantages of Selling Your Metro Atlanta Home and Downsizing

Is It Time to Downsize Your Home?

New Study Reveals that Downsizing your Metro-Atlanta Home Could Save You Upwards of $100K

Once the kids have left the nest, you may be wondering what to do with all of the extra space in your home. Chances are you don’t need all your bedrooms anymore. If so, it may be a great time to sell your house and downsize. You’ve likely gained a lot of equity if you’ve lived in your home for a while. Making a move while the demand for your current house is high could be your best step forward toward the retirement goals you set out to achieve several years ago.

A recent study by StorageCafe revealed that downsizing from a 4-bedroom to a 2-bedroom home in the Atlanta-Sandy Springs-Alpharetta metro area offers over $110K in savings for homeowners. In some markets that savings are even higher. The majority of the country is currently experiencing a sellers’ market. Let’s look at a few reasons why this might make sense for you.

Advantages of Selling Your Metro-Atlanta Home and Downsizing:

Less is more. A smaller home means less upkeep, which ultimately means less spending. You’ll not only have less maintenance but can you imagine how much money you’ll save on your heating and cooling bills?

A smaller home also allows for better accessibility. We see lots of buyers in the Dunwoody and Sandy Springs areas looking for homes with owner’s suites on the main level. It’s a popular adjustment to have as couples head into their retirement years.

“When we bought the house, what surprised up the most was not the cost of the mortgage… It’s everything else that came along with the house. The maintenance, lawn care, repairs, and all the other unexpected stuff,” said Denaye Barahone, founder of Simple Families blog. She explained that when her family moved to a smaller home, they booked a vacation when they would normally be paying for landscaping on their previous, bigger home. “We [traded] stuff, home, and responsibilities for experiences and fun.”

Let’s assume you have $500 a month on your mortgage payment. In 30 years, you could have an additional $1-1.6 million in the bank to get you through the golden years.

3. Dave Ramsey, the financial guru, suggests using the proceeds from selling your current home to pay cash for a smaller one. Just imagine what you could do with no mortgage holding you down! If you can’t pay cash, aim for a 15-year fixed mortgage rate and put at least 10-20% down on your new home. Apply the $500 you saved from downsizing to your new monthly payment. At 3% interest, you could pay off a $200,000 mortgage in less than 10.5 years, saving almost $16,000 in the process.

Bottom Line

We understand that downsizing from a home where you raised your kids, made friends, and gone to church can be a hard transition to even phantom. However, if your home is becoming too much to maintain, it could be a great time to sell and take advantage of the current market.

It may have been decades since your last real estate transaction and you’re apprehensive about the process. There’s a whole team at Karen Cannon, Realtors that will walk you through the process of selling your home and finding the right fit for you.

You can explore Sand Springs real estate current listings by clicking here.

Reasons You Should Consider Selling This Fall: Dunwoody and Sandy Springs

If you’re trying to decide when to sell your house in the Dunwoody and Sandy Springs real estate market, there may not be a better time to list than right now. The ultimate sellers’ market we’re in today won’t last forever. If you’re thinking of making a move, here are four reasons to put your house up for sale sooner rather than later.

1. Your House Will Likely Sell Quickly

According to the Realtors Confidence Index released by the National Association of Realtors (NAR), homes continue to sell quickly – on average, they’re selling in just 17 days. As a seller, that’s great news for you.

Average days on market is a strong indicator of buyer demand. And if homes are selling quickly, buyers have to be more decisive and act fast to submit their offer before other buyers swoop in.

2. Buyers Are Willing To Compete for Your House

In addition to selling quickly, homes are receiving multiple offers. That same survey shows sellers are seeing an average of 4.5 offers, and they’re competitive ones. The graph below shows how the average number of offers right now compares to previous years:Buyers today know bidding wars are a likely outcome, and they’re coming prepared with their best offer in hand. Receiving several offers on your house means you can select the one that makes the most sense for your situation and financial well-being.

3. When Supply Is Low, Your House Is in the Spotlight

One of the most significant challenges for motivated buyers is the current inventory of homes for sale. Though it’s improving, it remains at near-record lows. The chart below shows how today’s low inventory stacks up against recent years. The lighter the blue is in the chart, the lower the housing supply.If you’re looking to take advantage of buyer demand and get the most attention for your house, selling now before more listings come to the market might be your best option.

4. If You’re Thinking of Moving Up, Now May Be the Time

If your current home no longer meets your needs, it may be the perfect time to make a move. Today, homeowners are gaining a significant amount of wealth through growing equity. You can leverage that equity, plus current low mortgage rates, to power your move now. But these near-historic low rates won’t last forever.

Experts forecast interest rates will rise. In their forecast, Freddie Mac says:

“While we forecast rates to increase gradually later in the year, we don’t expect to see a rapid increase. At the end of the year, we forecast 30-year rates will be around 3.4%, rising to 3.8% by the fourth quarter of 2022.”

When rates rise, even modestly, it’ll impact your monthly payment and by extension your purchasing power.

Bottom Line

Don’t delay. The combination of housing supply challenges, low mortgage rates, and extremely motivated buyers gives sellers a unique opportunity this season. If you’re thinking about making a move, let’s chat about why it makes sense to list your house now.

Sellers: Make Today’s Home Price Appreciation Work for You

Home prices continue to rise as we move through the summer, and that’s good news for sellers who are looking to maximize their home’s potential. If you’re on the fence about whether to list your house now or later, the question you should really ask is: will this price appreciation last?

Here’s what three leading industry experts have to say about what lies ahead:

Lawrence Yun, Chief Economist, National Association of Realtors (NAR):

“At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year.”

Selma Hepp, Deputy Chief Economist, CoreLogic:

“The imbalance between robust demand and dismal availability of for-sale homes has led to a continual bidding over asking prices, which reached record levels in recent months . . . . Nevertheless, with more new listings and new home construction, home price acceleration that has built momentum, and continues to reach new highs, will likely slow later this summer but remain in double digits.”

George Ratiu, Chief Economist, realtor.com:

“Many sellers are going to take advantage of higher prices. This summer is going to signal the move to the next chapter, and this will very much be the year they’re going to put their home on the market.”

What It Means for You:

The experts agree that the summer months give sellers a great opportunity to capitalize on today’s home prices. And while prices aren’t expected to depreciate, the rise in prices is forecast to moderate over the next few years. That means selling your house today could set you up for a bigger win.

Bottom Line:

Listen to the experts. If you’re ready to make a move, let’s connect to discuss selling your house sooner rather than later so you can take advantage of today’s home price appreciation before it moderates.