Right now, a lot of individuals are curious about home prices. How much have costs increased in the last year? What is the current state of home values? What is the outlook for the coming year? The solutions to all three of these questions are shown below.

How much has the value of your home increased in the last year?
Home values have climbed by 18.1 percent since this time last year, according to CoreLogic's latest Home Price Index. In addition, for each of the last eight months, prices have risen at a faster rate (see graph below):

CoreLogic's increase in the rate of appreciation corresponds to data from the FHFA Home Price Index and the S&P Case Shiller Index, the other two major home price indexes.

Home prices have risen dramatically in the recent year, resulting in a significant increase in wealth for homeowners due to increased equity.

What is the current state of housing prices?

While price acceleration is currently in the upper double digits, all three indices stated above show that it is beginning to level off (see graph below):

The rate of year-over-year appreciation is still close to 20%, but it is plainly plateauing. Many experts predict that it will go below 15% before the end of the year.

Keep in mind that this does not imply that home values will fall. It indicates that while the rate of appreciation may drop, it will still be higher than the 25-year average of 5.1 percent.

What about the following year?

The current price increase is the result of high buyer demand and a scarcity of available properties. Most analysts assume that when additional housing inventory (both new development and existing homes) enters the market, the supply and demand for housing will balance out. In 2022, this balance will result in a reduced rate of appreciation.

Here are six significant entities' home price estimates, all of which predict future appreciation:

• Fannie Mae
• Freddie Mac
• Mortgage Bankers Association
• Home Price Expectation Survey
• Zelman & Associates
• National Association of Realtors

While analysts predict varying rates of appreciation due to factors such as supply chain issues, virus variations, and other factors, it's certain that property prices will continue to rise next year.

Conclusion

Over the last year, property prices have risen to unprecedented heights. As we approach the end of 2021 and the start of 2022, the pace will moderate. Prices will continue to climb, but at a slower rate, which is excellent news for the home market.