The Housing Market Forecast for 2022

The American Dream: there are few people in this nation that don’t know this long-standing tradition. For several decades, those from this country and even others have been longing to achieve the American dream. To buy a home and start a life in one of the greatest nations on the planet, where the streets were thought to be paved with gold, is quite the feat.

Now, people are still working hard every day in order to be able to purchase their one piece of America. The housing market doesn’t always make that easy, though, as it is incredibly unpredictable. Throughout the country, even throughout one single state, the prices and rate of the market shift dramatically from day to day. This year is no different. Hang on to your hats, because it’s going to be a crazy ride.

So far, it seems that prices for U.S. homes are steadily rising, but the inventory on the market is declining at an even faster rate. People are grabbing at straws to get their chance to buy a house. The borrowing methods utilized by home buyers in 2022 is also changing, depending on the background of the buyer.

Economists are forecasting even more growth over the next 12 months. Check out the text below and stay up to date on the housing market.

housing market forecast 2022

Home Sales

Existing-home sales increased near the end of 2021 from the year before, according to the National Association of Realtors (NAR). From October to November 2021, there was an increase in existing home sales of 0.8%, but a year-over-year increase of 13.1%.

For Sale Home Inventory

Tight inventory continues to be a problem, with first-time homebuyers most affected. The supply of new single homes decreased 0.8% from last month, and decreased 12% from the same time last year.

Tight Housing Supply

Housing inventory is currently at a 2.4-month supply, down 12% from the same time last year. That’s much lower than the 5- to 6-months’ supply for a balanced market.

Mortgage Applications Dipped

Mortgage applications decreased 2.2% year-over-year, and declined 3% from October to November 2021.

Median Price

The median price for a typical US home is $316,368 as of December 2021, up 19.3% from December 2020.

30-Year Fixed-Rate Mortgage Rate

The current 30-year fixed-rate mortgage rate inched up to 3.1% by mid-December 2021 and is expected to inch up to 4% by the end of 2022.

Home Price Growth in 2022

Real estate research firm Zillow predicts that home prices will increase 14.3% over the next 12 months, after having increased 19.3% over 2021.

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