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Everyone is making predictions about the housing market, will the market rise, will the housing market fall, will the housing market crash or will prices remain static.  Of course, no experts can predict the market with complete accuracy, but it is HIGHLY UNLIKELY that housing prices will drop in the U.S. in 2022.  The most recent predictions, based on facts, see home values continuing to climb through this year and into next. However, many experts advise we will see smaller price gains this year, compared to the gains from 2020 and 2021.  The experts are predicting that U.S. housing prices will rise in 2022, but only by about 4%, so clearly a cooling trend is expected, but the market is expected to remain strong.  All the experts studied seem to have the same outlook, except for Zillow.  Zillow is predicting a rise of about 12% in home values in 2022, and they have based this prediction on the ongoing housing shortage.

Housing supply in the U.S. remains below normal levels, even with the massive amount of building all around us.  Housing Inventory was tight before the pandemic, and the inventory only became tighter due to the unexpected rise in home sales.   Two factors are cited that could possibly reverse this trend.  One is inventory growth which could balance the shortage thereby reducing home price appreciation.  The second factor that could cause a cooling effect on the market is affordability, or the lack of affordability.   Many U.S. Cities are becoming unaffordable to an ever-growing number of residents thereby reducing the number of buyers.  In Solivita we do not have this issue as our housing is still affordable and our community is almost built out to capacity making it impossible for Solivita to overbuild.