Recent Trends in Home Prices 2022
It‘s no secret that home prices have been on the rise in recent years. According to the National Association of Realtors, the median existing home price was up 6.3% in 2021, and they expect prices to rise another 4.3% in 2022. But what’s driving these price increases? There are a number of factors that are contributing to the rise in home prices. One of the biggest is the simple fact that there’s more demand for homes than there is supply. This is especially true in larger metropolitan areas where job growth is strong and people are looking to buy their first home or move up to a larger one. Another factor that’s driving prices higher is the low inventory of homes for sale. The number of homes available for sale fell to a record low in 2021, and it’s likely that this trend will continue in 2022. This is due in part to the fact that many homeowners who would like to sell are still waiting for prices to recover from the downturn that began in 2017. Finally, mortgage rates are still at historically low levels, which makes buying a home more affordable than it would be if rates were higher. This is especially true for first-time homebuyers who may not have a lot of extra cash on hand for a down payment. If you’re thinking of buying a home in 2022, you’ll need to be prepared for prices that are higher than they were last year. But with mortgage rates remaining low and the economy continuing to improve, now is still a good time to buy.