How Much 2022 Home Prices Are Forecast to Shift in Each of America’s 100 Largest Markets
It’s official: The rate of U.S. home price growth is finally beginning to decelerate after 16 consecutive months of price acceleration.
That deceleration could be the start of a bigger cooldown. At least that’s what Realtor.com, a real estate listing site owned by News Corp., is forecasting. By the end of 2022, the site is predicting U.S. home values will climb just 2.9% as rising mortgage rates take some steam out of the market. That would represent both the smallest annual uptick since 2012 and also a big-time slowdown from the 19.5% U.S. home price jump posted in the S&P CoreLogic Case-Shiller Index from September 2020 to September 2021.
That said, buyers and sellers alike shouldn’t necessarily expect Realtor.com’s forecast of 2.9% home price growth in their local market. Separate from its national forecast figure, Realtor.com also modeled predictions for year-over-year home price changes in the nation’s 100 largest housing markets. Those projected growth rates vary from 10% in Portland, Maine, to 0.2% in Honolulu. The former represents a bullish market that would look a lot like the 2021 frenzied landscape, while the latter would be a margin of error away from seeing prices fall.