Trends to Expect in the US Housing Market

As an outcome of the COVID pandemic, several aspects of the housing market were affected in the US. Mortgage rates plunged to record lows, and the price of homes increased dramatically.

As a result, Americans bought larger homes in record numbers.

In 2022, the housing market could cool off significantly following record-breaking conditions in 2020 and 2021.

Here are 14 real estate trends you need to watch

Mortgage Rates to Increase

It is not only gas prices that are rising. Although the war in Ukraine briefly lowered interest rates, other factors are pushing the rates higher. According to the Federal Reserve, a rate hike is imminent.

In January of last year, mortgage experts had predicted that rates would continue to rise from the all-time low of 2.93 percent. They plunged in 2020, but this year, almost everyone worldwide is expecting the rates to increase.

It Will be a Seller’s Market

Although the outlook for purchasers is improving, it is still a seller’s market. According to experts, inventory will remain tight, and 2022 will remain a seller’s market.



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However, according to, the market will recover from its 2021 lows in 2022, with inventory increasing by 0.3 percent on average.

Slower Price Appreciation

Since March 2020, the pandemic’s start, the median price of homes sold by Realtors has increased by 29 percent, from $280,700 to $362,800. The price has remained steady at $350,000 since then.

Lawrence Yun, the National Association of Realtors’ chief economist, predicts a temporary drop in home sales after a spectacular year for housing in 2021 and 2020. The association forecasts that home prices will appreciate by 2.8 % in 2022, compared to 14.7% in 2021.

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