Buyers and sellers are asking us, what will home prices do in 2022?

Well, according to the experts, home prices are not projected to decline.

Buyers still outweigh sellers, so home prices are forecast to continue climbing in 2022, just at a slower or more moderate pace than the record-breaking 18% to almost 20% increase the market saw over the past 12 months. 

It’s the simple law of supply and demand. When there are fewer items on the market than there are buyers, the competition for that item makes prices naturally rise.

The imbalance of supply and demand will continue to put upward pressure on home prices in 2022 even though there may be a small increase in interest rates.

None of the major experts are projecting depreciation in 2022. 

And here’s what some of the industry’s experts are saying.

Brad Hunter of Hunter Housing Economics:

“. . . the recent unsustainable rate of home price appreciation will slow sharply. . .  home prices will not decline but they will simply rise at a more sustainable pace.”

Danielle Hale from realtor.com:

“Price growth is expected to move back toward a normal range, but this is on top of recent high prices, . . . So prices will [still] hit new highs. . . . The pace of price growth is going to slow notably . . . ”

So, whether you are a potential buyer or seller, it’s important to know that home prices are not projected to decline this. The consensus is that they’re forecast to rise, just at a more moderate pace. 

This highlights the importance of working with a trusted, experienced agent to ensure you’re well advised on market trends and help you make the right move.