According to George Ratiu, senior economist at realtor.com, the housing market decidedly shot way ahead of the economy in 2021. We saw an overheated market with multiple offers, waivers of contingencies, price escalation clauses, and record prices.
He predicts that next year, we will see a more normal market. Buyers will have more options. But don’t expect a seller’s market or big price drops.
Core Logic forecasts a 3.2% increase in prices year over year from June to June 2022. Zillow predicts as much as 12% year over year from July 2021 to July 2022.
Most experts predict that values will increase slower than they did in 2021.
A big unknown is when the Fed will start increasing interest rates and will end quantitative easing (printing of money). As the money supply increases, real estate values tend to go up. A decrease in the money supply (e.g., caused by an end to quantitative easing or an increase in interest rates) puts downward pressure on real estate values.
https://fortune.com/2021/09/02/housing-market-predictions-2022/