HOME prices have surged across the country since the onset of the pandemic – but they are rising more rapidly in some states than others.
In 2021, average home prices have climbed to $408,800, up from $389,400 in the previous year, according to research and analysis firm Statista.
If you’re a homeowner you’ve likely benefited from this.
Meanwhile, this hasn’t been as fun for those in the market for a home, as the supply isn’t meeting the demand.
As things stand, the demand remains sky-high while inventory remains low.
Add that to the lack of action by the Federal Reserve, which is another reason why prices remain so high.
As a result, some first-time home buyers are having a challenging time affording a home.
We unveil below which median home list prices are rising at the highest pace since the beginning of the pandemic by state.
Home prices rising at the highest levels by state
The figures below come from calculations cited by Fortune using data from Realtor.
Also, it’s based on data from January 2020 through November 2021.
- Montana: 57%
- Idaho: 46%
- Utah: 37%
- Nevada: 37%
- Maine: 36%
The surge in home prices in those states come as homebuyers avoided higher-priced markets in states including New York and California.
Home prices rising at the lowest levels by state
Below are the states which have median home list prices increasing at the lowest levels.
- Ohio: 9%
- Maryland: 10%,
- Oklahoma: 11%
- Iowa: 11%
- Nebraska: 12%
Forecast for 2022
Where prices will wind up next year could depend on if the Fed takes actions by hiking interest rates.
When rates are hiked, it aims to discourage borrowing and ease down demand.
Although the Fed can’t directly lower mortgage rates, it does impact them with its monetary policies.
The central bank now sees three rate hikes next year followed by three additional spikes in 2023 and 2024.
But that doesn’t mean prices will fall; instead, they won’t continue to rise as expeditiously if the Fed takes action, according to experts.
“Prices aren’t going to suddenly fall. But they shouldn’t keep growing at 18% year-over-year, either,” Maggie Overholt, lead editor at The Mortgage Reports told The Sun.
“Hopefully we’ll see a more normal home price appreciation trend in 2022; somewhere in the 4-5% range, which has been the norm over the past few decades.”
Jordan Fulmer, a real estate investor at Momentum Property Solutions said he doesn’t see prices going down in areas with higher demand and low inventory, but prices could go down in locations with lower demand.
But “we will likely never see pre-COVID prices again,” he said.
Low-income owners can save up to $3,000 annually by refinancing.
We breakdown the states handing out the biggest stimulus checks to homeowners in need.
Plus, see how you can get other mortgage help.
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