A lot more of the dynamics seen in 2021 — but at a much less frenzied pace — is expected to be on tap for next year’s housing market.
Redfin Corp. (NASDAQ: RDFN), Zillow Group Inc. (NASDAQ: ZG), Realtor.com and the National Association of Realtors, among others, have released their forecasts for the 2022 U.S. housing market, with similar themes, although some variations, among each source.
Home-price appreciation is widely expected to continue next year, but not at the breakneck rate seen in 2021. By the end of 2022, home-price growth will slow to 3%, predicts Seattle-based Redfin. Realtor.com out of Santa Clara, California, is forecasting 2.9% home-price appreciation nationally. This year will likely end at nearly 20% year-over-year home-price appreciation nationally, according to Zillow.
But Zillow, in its most recent forecast for the 12-month period ending Oct. 31, 2022, is still predicting big home-price spikes. It predicts home values to grow 13.6% between October 2021 to October 2022.
