While 2021 faced its fair share of ups and downs, we know one thing to be true: the real estate market not only met expert predictions, it surpassed them, breaking records along the way.
With that in mind, there’s one big blaring question right now: will the 2022 housing market continue to follow same trajectory, or are we facing a possible downturn?
Let’s take a deep dive into what leading real estate experts are projecting for the final quarter of 2021 and what to expect in 2022 so you have the knowledge and confidence you need to succeed.
There’s no hiding the fact that this year’s home price escalation was a bit excessive. However, it was also just a result of simple economics – high buyer demand coupled with extremely low supply.
All of this leads to the question everyone has on their minds: do all these signs point to a housing market crash?
The answer, according to top real estate experts, is a big “no.”
The forbearance situation should be balanced out by the large amount of equity homeowners currently have – meaning they can choose to sell rather than foreclose.
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, stabilizing price appreciation across the nation.
But will home prices depreciate in 2022? The experts don’t think so. Instead, they are projecting a more modest appreciation of 5.82% in the next 12 months compared to the 11.74% rise seen on average in 2021.
Need a tailored analysis of your home or a friendly real estate consultation?
You probably already have it, but here is my phone number again for you: 619.370.4257
~ Simona
