What will the slowing rates of appreciation mean for sellers?
Have we reached the peak of rapid home appreciation? Today I’ll talk about the appreciation projections for the coming years.
Appreciation projections should be a huge part of your strategy. Most homeowners expect their property to appreciate every year. However, over the last two years, the rate of our appreciation has been higher than we’ve ever seen. Many of our clients have asked us whether we think this trend is here to stay.
I believe that the rapid rate of appreciation will slow down in 2022. Projections say that we will see appreciation come down to about 10% and slowly decrease over the next five years. However, there’s no reason to worry. I’m not saying that your home will depreciate. Future appreciation will likely be in line with what we think of as a balanced market at around 5%.
The window of aggressive appreciation is closing. If you’ve considered selling and would like to get the most from your equity position with multiple offers, now is the time to list your home. I would love to help you with your next move. Reach out to me at (602) 741-7531 or email us at Team@AZPalmerProperties.com.