Home price increases more than doubled in 2021 when compared to the year prior, rising 15% annually versus just 6% in 2020, according to the latest report from financial services company CoreLogic. The high demand for homes and conversely low supply in 2021 created a hot housing market that resulted in record-breaking home price growth, according to the company's Home Price Index (HPI).
"Much of what we’ve seen in the run-up of home prices over the last year has been the result of a perfect storm of supply and demand pressures," said CoreLogic Chief Economist Frank Nothaft. "As we move further into 2022, economic factors – such as new home building and a rise in mortgage rates – are in motion to help relieve some of this pressure and steadily temper the rapid home price acceleration seen in 2021."
Homeowners can take advantage of this record-high home price appreciation by taking cash out of their home through a cash-out refinance. Visit Credible to find your personalized interest rate without affecting your credit score.
What to expect for home price growth in 2022
Home price growth is predicted to remain above 10% in the beginning of 2022, and subsequently drop each month before ultimately landing at 3.5% by year's end, according to the HPI. Contrasting 2022's expected slowdown, 2021 saw accelerated price appreciation as low inventory and high demand pushed home sales prices higher.
In December 2021, home prices grew 18.5% annually and 1.3% on a month-over-month basis, according to the report. The year began with a 10% annual increase in home prices during the first quarter, averaging an overall 15% price growth.
If you want to take advantage of rising home prices, consider taking out a cash-out refinance. Visit Credible to compare multiple lenders at once and choose the one with the lender with low interest rate for your loan.
The highest home price growth occurred in this state
Amid home price appreciation in many metropolitan areas across the America, some regions in particular saw especially high increases. The Sunshine State of Florida is home to the two cities with the highest December 2021 annual home price gains, in Naples and Punta Gorda. According to CoreLogic, these cities saw 37.6% and 35.7% growth, respectively.
Geographically, states in the Southern, Southwest and Mountain West U.S. dominated the lists of the top home price gains. Arizona leads the way with 28.4% annual growth, followed by Florida (27.1%) and Utah (25.2%).
If your home saw significant increases in value this year, a cash-out refinance could help you pull cash out of the home to use for home improvement projects or to pay down high-interest debt. Contact Credible to speak to a home loan expert and get all of your questions answered.
Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at email@example.com and your question might be answered by Credible in our Money Expert column.