As we wrap another crazy year for real estate, there’s one big question on everyone’s minds right now: will the 2022 housing market continue to follow the same trajectory, or are we facing a possible downturn? The past two years have been full of exciting and record-breaking moments. In the past 12 months, home price appreciation has been the topic of many headlines. Speculation that we’re in another housing bubble has kept many buyers and sellers hesitant that we’re headed for another crash.
So, what does the future hold for home prices? It’s important to remember that the 2021 market was anything but normal, and that escalating home values were a direct result of record-low inventory. However, experts project that the inventory situation should improve in the coming year, slowing price appreciation. But will home prices depreciate in 2022? Over 100 industry experts don’t think so. Instead, they are projecting a more modest appreciation of 5.1% in the next 12 months compared to the nearly 20% rise seen on average in 2021.
While today’s market might not be as crazy as it was a year ago, it’s still strong. Waiting until next year could mean losing out on a less competitive market and better affordability: the two biggest factors positively impacting buyers and sellers today. If we’ve learned anything in the past couple of years, it’s that while we can project the future, we can’t predict it.