Key Takeaways
- The massive increase in prices from the last several years will slow in 2022.
- Inventory and listings were dynamic from ever-changing global conditions.
- You need a solid team to navigate buying or selling a home this year – contact Linda Craft & Team today!
After two years of double-digit increases, it would seem like home values would slow down or even stagnate. However, reports indicate that we’re going to see that price increases nationally will continue throughout 2022. Here’s how much you can expect home values to rise.
Home Values Are Still Going Up
Despite a brief plateau of average home prices on a month-over-month basis at the end of 2021 and into January 2022, home prices are still expected to increase year-over-year in aggregate by 3.5% from December 2021 to December 2022, with major metro markets continuing their upwards trajectory.
The exponential growth in 2020 and 2021 will slow in 2022, but appreciation will continue. Early in the year, growth is projected to remain above 10% but then will slowly decline to the 3.5% predicted for December year-over-year. Overall, on a national level, this means an annual average increase of 9.6% in 2022.
Why Didn’t Home Prices Go Down?
Predictions of an increase in inventory and a decrease in buyer demand at the end of 2021 didn’t materialize. Instead, inventory remained low, and buyer demand stayed high.
Here are the main reasons why active listings didn’t increase:
- The end of the government forbearance program did not cause the expected surge in foreclosures.
- New construction slowed considerably due to challenges in the global supply chain.
- Despite the COVID-19 pandemic waning, sellers did not list their homes for sale as expected, either.
Given all of this, it’s safe to expect positive but moderate year-over-year gains coming in 2022.
Get Help with the Real Estate Market
With home prices, values, and inventory changing quickly every month as we continue with a turbulent real estate market, you need an expert team by your side whether you’re buying or selling. Contact Linda Craft & Team today at 919.235.0007 to plan your smartest moves in 2022.