Real Estate Market Predictions for 2022. Is a Market Crash Coming?

If you are in the market to buy or sell your home, you are probably feeling quite uncertain as to where the winds are blowing in 2022. 

If you are a seller, you may be considering delaying putting your home on the market as every passing month brings more value to your home.

If you are looking to buy, you are unsure if you should wait out the current market hype and wait for the housing market to cool down.

Following are some key insights that should provide clarity and help you decide if 2022 is the year to buy/sell a home.

See the chart below taken from Realtors Confidence Index from February 2022:

You can see state to state the median price change expected in the next 12 months. 

Below you can see the average Days on Market (DOM) for each state. Nationwide it is 18 days. 

Realto also reports that only 29% of home buyers are first-time home buyers and as much as 25% of purchases are cash sales. 

Here's more: the average offer towards a home nationwide is a whopping 48 offers!

This leads one to think that 2022 won't see any real estate crash as there are way too many buyers in line to purchase a home. It will expectedly take a while for inventory to catch up to demand. 

There are multiple predictions of double-digit growth. A report in January from Zillow noted that home values were expected to grow 16.4% between December 2021 and December 2022; Goldman Sachs, in October, forecast that home prices would rise 16% through 2022. Fannie Mae says home prices will climb 11.2% throughout this year, followed by a more modest increase in 2023.

It seems that as of right now home prices are in an upward trajectory. 

Where do you think the housing market is headed?

Jacob