Can you believe it’s December? With a new year just weeks away, we don’t know about you, but we are already looking toward the future! As far as real estate goes, the predictions for home prices in 2022 remain, well, unpredictable!
But we’ve gathered what several top real estate analysts are saying and compiled a rundown of the—at times polar opposite—predictions for home prices in 2022.
What top experts predict
Before we delve into the fun of predictions, let’s remember just what a prediction is. Basically, it’s just a claim of what might happen—even if it is based on data.
So, without further ado, here’s a recap of what experts are saying could happen in terms of home prices in 2022.
Goldman Sachs
First up, Goldman Sachs researchers indicate the average price of homes nationwide will skyrocket throughout the next 15 months.
In fact, the investment bank’s predictions for home prices in 2022 forecast a 16 percent increase by the end of the year.
Zillow
Zillow’s projections are similar to Goldman Sachs’ outlook for next year. The online real estate company estimates a 13.6 percent appreciation of home values for 2022.
Ramsey Solutions
Continuing down the line, Dave Ramsey’s “Ramsey Solutions” predicts a 7 percent growth in home prices in the new year.
CoreLogic
CoreLogic casted its vote into the mix, projecting a 6 percent annual average rise in the national index.
Freddie Mac
Like CoreLogic, Freddie Mac remains more in the middle. They see home prices going up, but not as drastically with about a 5 percent overall increase.
Realtor.com
Realtor.com’s predictions are the most conservative of this bunch, predicting just a 2.9 percent increase in home prices.
Other Key Takeaways
Again, take these predictions with a grain of salt. Mostly because there are still a couple of big unknowns. For example, will supply and demand continue to be an issue?
We’ve seen a slow but steady rise in inventory locally, which includes new construction, but can it keep up with local demand?
Another unknown is mortgage rates. Will they go up? If so, how much? In the end, only time will tell.
One general theme echoed among the experts is this: the seller’s market will remain in place, however with purportedly less frenzy than we saw in 2021, echoed by a slower growth for home prices in 2022.
Summary
In the meantime, don’t put your homebuying dreams on hold! Even though prices aren’t slated to go down in the new year, mortgage rates remain low at the moment.
Whether you want to shop home inventory or add to it, contact Ryan. His expertise and local market knowledge can make your buying and/or selling experience easier. Keep reading our blogs for more real estate news, market trends and property spotlights!