As 2022 neared, real estate professionals began to forecast the housing market for the spring of 2022. Many experts predicted that the drastic increase to home values that Americans saw during the height of the pandemic, would begin to slow down significantly.
Nevertheless, as March 2022 approaches, some real estate experts are adjusting their predictions. In an article published on Nasdaq.com, Marc Rapport reports that, for example, the Zillow economists adjusted their initial prediction of a 11% increase in home values for 2022 to a predicted 16.4% increase. The report prepared by Zillow explained, “The robust long-term outlook is driven by our expectations for tight market conditions to persist, with demand for housing exceeding the supply of available homes.”
Yet, some economists don’t see that type of growth happening again this year. Lawrence Yun, the National Association of Realtors chief economist, predicts growth around 3-5% for 2022, continuing through 2023. “The good news is that home prices should begin to normalize later in 2022 as more homes come on the market,” Yun said in Rapport’s article.
Of course factors such as inflation, home price increase and mortgage rates affect affordability of home for many Americans. Even as home prices level out, these other economic factors will surely impact what the future holds for the real estate market. Read the entire article.