If you’ve been considering buying or selling a home, but have been waiting to see what  the housing market will look like in 2022, a look at some facts and opinions from real estate experts may help. 

The housing market exploded in 2021, due to what some experts say was a post-COVID-19 rebound. Steady mortgage rates and people returning to work helped increase home sales. 

According to the S&P CoreLogic Case-Shiller U.S. National Home Price Index, in February 2022, there was a 19.8% increase in the price of homes, which was slightly higher than the price increase last year. Several US cities reported price increases. 

In the first few months of 2022, according to the National Association of Realtors, the median home price in March 2022 was $375K, which is about a 15% increase from the price in March 2021. 

The high cost of houses was attributed to a rebound of economic activity after pandemic lockdowns of the previous two years. 

Other factors affecting the housing market include the war in Ukraine, which causes supply-chain shortages and complications, and increases in wages. Inventory of housing units for sale remains low. The 2007-2008 housing crash still has lingering effects on the US market, and high prices for materials and supplies has slowed down new construction, reducing the number of new housing units available to buyers

In response to inflation, the Federal Reserve began to increase increase rates, and the impact is yet to be seen.

In 2022, it is predicted that housing sales will probably stay about the same, interest rates will probably go up, and prices will likely continue to rise.
According to real estate agents, demand for houses will stay somewhat strong throughout most of the country, and inventory will stay low.  That’s a good sign for sellers.

So, is 2022 a good time to buy a home? With more buyers than sellers, buyers will very likely be encountering a lot of competition, high prices and possible bidding wars.