According to Fannie Mae, the Federal National Mortgage Association, the median price of a home in the US is expected to increase by 7.9% between the fourth quarter of 2021 and that of 2022. This may come as a surprise to those who have seen that mortgage rates are supposed to increase year over year, but, honestly, the rate hike will mean that a 30-year fixed rate loan will be at 4%, just a bit higher than the historic lows that we have seen lately, so that is not going to scare off buyers. In Fannie Mae’s 2022 outlook, the organization’s chief economist Doug Duncan wrote, "Mortgage rates may rise in response to the tighter environment, but we expect the severe shortage of homes for sale to remain the primary driver of strong house price appreciation through at least 2022, limiting interest rate effects on home sales and home prices."
This market is beginning to feel like the embodiment of an Economics 101 class: the demand exceeds the supply, so prices are rising. If you have a home to sell and are worried that you missed the hot market of 2020-2021, fear not! Real Estate prices should continue to increase next year as well.