Over the past couple of months, home price acceleration appears to have peaked. Keep in mind, though, that doesn’t mean home values will depreciate. It just means the rate of appreciation will slow, yet stay well above the 25-year average of 5.1% in most areas. 

The recent surge in prices has been the result of heavy buyer demand and a shortage of homes available for sale. Most experts believe, however, that as more housing inventory comes to market, both new construction and existing homes, the supply and demand for housing will come more into balance. 

That balance will bring a lower rate of appreciation in 2022. So the bottom line for 2022 is that prices will still rise, just at a much more moderate pace, which is good news for the housing market. 

What are your thoughts on the 2022 real estate market?