WASHINGTON, DC — The first quarter of 2022 saw more markets reach double-digit annual price gains than the previous quarter, although appreciation should slow in the coming months, the National Association of Realtors predicted.
According to the latest quarterly report of the Washington, DC-based NAR, 70% of 185 measured U.S. metro areas experienced double-digit price gains, up from 66% in the preceding quarter. The increases came as median single-family existing-home prices rose at a faster rate nationally, 15.7%, from one year ago. In comparison, the year-over-year pace in the prior quarter was 14.3%, the NAR reported.
“Prices throughout the country have surged for the better part of two years, including in the first quarter of 2022,” said Lawrence Yun, NAR chief economist. “Given the extremely low inventory, we’re unlikely to see price declines, but appreciation should slow in the coming months.”
Yun said that his prediction was based on an expectation of further supply for the upcoming quarter, citing that the beginning of the first quarter registered a record-low amount of inventory. He also anticipates other changes, he noted.
“I expect more pullback in housing demand as mortgage rates take a heavier toll on affordability,” Yun said. “There are no indications that rates will ease anytime soon.”