The housing market boomed at the height of the COVID-19 pandemic, but experts at the National Association of Realtors say the uncharacteristically active market conditions are showing signs of declining to more normal levels in 2022.
“The housing sector’s success will continue, but I don’t expect next year’s performance to exceed this year’s,” NAR Chief Economist Lawrence Yun said during a presentation at the 2021 Realtors Conference and Expo in San Diego.
The predicted decline is based largely on an anticipation of more home inventory in the coming months.
“With more housing inventory to hit the market, the intense multiple offers will start to ease,” Yun added. “Home prices will continue to rise but at a slower pace.”
While housing market sales may decline in 2022, home sales will still likely outdo pre-pandemic purchasing, according to Yun.
Mortgage rates—currently at 3.0%—are also predicted to increase to 3.7% in the coming months due to high inflation.
