The results of a November 2021 survey of real estate professionals about the 2022 forecast are in, and they’re rather split. 41% expect prices to continue to rise and 41% expect them to fall. The remaining 18% predict prices will remain about where they are. Keep in mind, though, the survey was conducted a few months ago and may not reflect experts’ current beliefs. In addition, all of those who predicted continued rise in price conceded that the rate of increase will probably be slower.
There are a few factors pointing to slowdown, whether it’s a decline or a slower rise in home prices. Interest rates are increasing, which decreases buyer demand and buyer purchasing power, pulling down prices. The job recovery is still lagging behind. Forbearance exits mean greater inventory. Even global events are threatening to destabilize the economy, and uncertain buyers makes for less frequent buyers.