Americans will long remember 2020 as the Year Of Insane Real Estate Prices. They'll presumably remember 2021 that way as well. And now apparently they can just go ahead and put 2022 on that list as well:
Homebuyers got crushed last year as home prices soared at their highest clip on record. Housing economists saw that price growth—which peaked at a year-over-year rate of 20% last year—as simply unsustainable. Their economic models agreed: Among the seven forecast models reviewed by Fortune heading into 2022, every single one predicted home price growth would slow significantly this year.
But over the past few weeks, that consensus is no longer so unified. Now, more industry insiders are throwing out their previous forecasts and replacing them with more bullish short-term outlooks. Indeed, some experts say the 2022 spring housing market might go down as one of the most competitive on record.
Look no further than Zillow. Back in December, the home listing site predicted that U.S. home values would climb 11% this year. Economists at Zillow now say that forecast is too conservative. Their latest forecast finds home prices are set to spike 16.4% between December 2021 and December 2022. If it comes to fruition, it would mark another brutal year for home shoppers.
It can be hard to nail down the particulars of the housing market, so here's a useful primer for you:
If you already own a house (especially if you bought low):
If you're thinking of buying anytime in the next 12 months:
Buckle up, folks, it's gonna be a wild year!
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