Experts Predict The Hottest Real Estate Trends, Best And Worst Housing Markets For 2022
The Wealth Gang team writes about financial information, passive income ideas, apps, programs, cash management tools and other wealth gadgets that we think you might want to use or learn more about. Sometimes, we write about products, services or items that might be associated with affiliate partnerships. In these instances, we will earn a small percentage of the revenue from sales. There is, of course, no cost to you.
Thank you for all your support! Without you, we could not keep this site running. Gang Gang!
The U.S. real estate market enjoyed a record year in 2021, including the national median home-sale price hit an all-time high, home supply dropped to a record low, the average home sold in the shortest time – 15 days, and 54% of homes sold above their list price – a record high – up from 26% a year ago. Real estate experts attempt to predict what will be the hottest housing trends in 2022.
Zillow predicts, “2022 will fall just short of record-breaking.”
“Zillow’s forecast calls for 11% home value growth in 2022,” the real estate site says. “That’s down from a projected 19.5% in 2021, a record year-end pace of home value appreciation, but would rank among the strongest years Zillow has tracked. Existing home sales are predicted to total 6.35 million, compared to an estimated 6.12 million this year. That would be the highest number of home sales in any year since 2006.”
Zillow believes that the Sun Belt will be a place of significant growth.
“As of October, the smaller Florida metros of Fort Myers and Sarasota held the top spots, and 24 of the top 25 markets were in sunny states – a sign of things to come in 2022,” Zillow states.
Realtor.com released their list of the “Top 10 Housing Markets Positioned for Growth in 2022.”
Top 10 Housing Markets Positioned for Growth in 2022 – Combined 2022 Sales Growth + Price Growth:
- Salt Lake City, Utah – 23.7%
- Boise City, Idaho – 20.8%
- Spokane-Spokane Valley, Wash. – 20.5%
- Indianapolis-Carmel-Anderson, Ind. – 20.4%
- Columbus, Ohio – 20.0%
- Providence-Warwick, R.I.-Mass. – 17.7%
- Greenville-Anderson-Mauldin, S.C. – 17.1%
- Seattle-Tacoma-Bellevue, Wash. – 17.1%
- Worcester, Mass.-Conn. – 16.6%
- Tampa-St. Petersburg-Clearwater, Fla. – 16.4%
ICYMI, we announced the Top Housing Markets of 2022 – did your city make the list?
— Realtor.com (@realtordotcom) December 13, 2021
However, not all markets will be surging in the United States. According to Realtor.com, national U.S. home values will rise just 2.9% by the end of 2022 – the smallest increase since 2012.
The top markets that are expected to show the least amount of growth are:
- Honolulu – 0.2%
- Hartford – 0.7%
- New Haven – 1%
- Scranton – 1.1%
- Baton Rouge – 1.5%
- St. Louis – 1.7%
- North Port, Fla. – 1.7%
- Tulsa – 1.8%
- Chicago – 1.9%
- New York City – 2.3%
Investor Place notes that this real estate boom is far different from the one in the early 2000s that got burst by a bubble because of several reasons, including, “ultra-low financing costs, very tight housing supply, a revitalized view of the importance of a home, and a demographic-related surge in homebuying demand.”
“Millennials and baby boomers are colliding to create the biggest homebuying demand surge we’ve seen in decades,” the investing website explains. “Millennials have developed a reputation for postponing big life events, such as getting married, having kids, and buying homes. Now, they’re doing all of those things, as they’ve mostly reached an age and income where doing so makes logical and financial sense. This translates into tens of millions of new homebuyers entering the market over the next decade, at the same time that tens of millions of boomers are reaching that age where they are looking to downsize.”
[Photo by Jessica Bryant from Pexels]