Where people live in the United States has shifted somewhat in the past two years. Some residents of large coastal cities such as New York, Los Angeles and San Francisco have moved inland. These larger cities are considered too expensive. The COVID-19 pandemic also has caused people to rethink whether they want to live in crowded urban areas. And the new work-from-home trend means that people can be geographically untethered from their former offices.
Cities that have become popular with people who have or are relocating may have home prices higher than expected. The rush to live in these metro areas has driven up home prices, in most cases by double digits.
Realtor.com’s “Housing Forecast 2022” offers a look at the coming real estate market. The report is based on predictions of growing home sales and listing prices.
When 2022 is compared to 2021, the forecast shows “existing median home price appreciation” is expected to rise by 2.9%. Existing home sales are expected to rise by 6.6%, and existing home sales inventory will increase a tiny 0.2%. Summing up some of the conclusions, the lead author of the study, Chief Economist Danielle Hale, writes that not all metros will keep pace:
In most metro markets, our model suggests that home sales will follow the national trend and increase in 2022. While some markets are expected to see home sales declines, these declines are likely to be modest. In fact, for many areas forecasted to see declines, 2022 is expected to have the 2nd highest sales level in the last 15 years, bested only by 2021.
The study looked at the largest 100 metros in the United States based on population. Among the top 10, home sales are expected to rise 11.6%. Home prices in the same markets are expected to rise 7.4%.
The top 2022 housing market in the country based on this data is Salt Lake City. The median home price for 2021 is $564,062. Home sales are expected to rise by 15.2%, and the forecast home price increase is 8.5%.
These are the top 10 housing markets for 2022:
|Metro||Sales Change||Price Change|
|Salt Lake City, Utah||15.2%||8.5%|
|Boise City, Idaho||12.9%||7.9%|
|Spokane-Spokane Valley, Wash.||12.8%||7.7%|
|Tampa-St. Petersburg-Clearwater, Fla.||9.6%||6.8%|