Experts Predict 2022 Housing Market

With the rise in mortgage rates, housing prices should stabilize, but low inventory still ingers.

According to the Wall Street Journal, last year was great for selling a home but not a great year if you were trying to buy one. Home prices rose sharply and the number of homes for sale declined. Although the 2022 housing market will still tilt toward sellers, it offers a slightly better chance for buyers to snag their dream homes.

The story of 2021 was how quickly home prices accelerated. The national median home price hit $362,800 in June, an all-time high, according to the National Association of Realtors. The Case-Shiller home price index peaked in August when prices rose 19.8 percent year-over-year that month. Phoenix home prices were up 33.3 percent annually, San Diego home prices were up 26.2 percent, and Tampa home prices were up 25.9 percent.

Low mortgage rates and limited supply helped push prices higher. There were just 1.38 million homes for sale nationally in June, down 23 percent year-over-year, according to Redfin. “The ongoing pandemic, including its seismic effect on the U.S. economy and the way Americans live and work, has made 2021’s housing market anything but typical,” said Daryl Fairweather, Redfin’s chief economist.

“Remote work, low mortgage rates, a shortage of building materials and wealth inequality that has allowed an influx of affluent Americans to buy vacation homes, to name just a few factors, have come together to create a historic year for real estate. Buyers paid more for homes, bought sooner than they planned, searched outside their hometowns or all of the above. [2021′s] frenzied housing market has been one for the books — but it may become more balanced in 2022.”

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https://www.washingtonpost.com/business/2022/01/10/2022-housing-market-predictions/

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