After a record year for home price growth, everyone is wondering if real estate prices will continue to increase in 2022. Some experts believe the market will continue to heat up, albeit at a slower pace, while others say the market could take a turn for the worse. Since no one has a crystal ball, we’ll let the data do the talking. Here’s a closer look at where real estate prices could be headed next year.

Housing shortage fueling record price growth

Supply and demand are the driving forces of price growth. When a product (in this case, real estate) is in high demand and short supply, its value increases. Over the past year, home values have increased over 21% year over year, according to the S&P/Case-Shiller U.S. National Home Price Index. Low interest rates, as well as record-high inflation, have been contributing factors to this rapid home appreciation, but the core of the issue is the…

Read more…

Share.

Comments are closed.