What Is The Forecast For 2022 Housing Market?
If you’re thinking of buying a home in today’s housing market, you may be wondering how strong your investment will be. You might be asking yourself: if I buy a home now, will it lose value in the coming months? The good news is, according to the experts, home prices are not projected to decline any time soon. Here’s why.
First- Buyers still outweigh sellers. The seller's market is expected to continue and home prices are forecast to continue climbing in 2022, but at a more moderate pace than what we’ve been experiencing. Why the continued increase? 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.
And while we do expect more inventory to pop on the market in the future as more and more sellers get ready to list their homes this winter, we’re certainly not out of the low-inventory woods yet. That’s why the projections show continued appreciation, but at a decelerated pace.
So what is the 2022 forecast? The experts are in agreement that we can expect an increase in the housing market next year.
Brad Hunter of Hunter Housing Economics explains:
“. . . 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.”
Another expert, Danielle Hale, from realtor.com, agrees, she says:
“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 what does this mean for the Daytona Beach housing market?
While home price appreciation is expected to continue, it isn’t projected to be this record-breaking increase like we saw this past year, which was at roughly 17% here in Volusia county. Overall, it’s important to note that price increases won’t be as monumental as they were in 2021 – but they certainly won’t decline anytime soon.
What Does That Mean for You?
In a nutshell, the imbalance of supply and demand will continue in 2022. Home prices will continue to rise, so if you’re a buyer and you’re waiting for home values to decrease, that’s not going to happen any time soon. And if you’re a seller, 2022 is a great time to sell.