2022 Will remain a seller’s market – especially in Central Florida – in spite of the National Association of REALTORS prediction that: “Housing likely to ‘normalize’ in 2022. Experts at NAR Real Estate Forecast Summit predicted slower price appreciation, easing inflation, and rising interest rates will create a more typical housing market this year.”

“While strong homebuyer demand and inventory shortages will continue into 2022, the housing market is unlikely to repeat this year’s [2021] dizzying heights, in which existing-home sales reached their highest point in 15 years with an estimated 6 million sales. Slower growth in home prices, decelerating inflation, and multiple interest rate hikes by the Federal Reserve could contribute to a more normal housing market in the new year, National Association of REALTORS® Chief Economist Lawrence Yun said.”

“For 2022, the group of experts predicts that annual median home prices will increase 5.7% and inflation will rise 4%. “Overall, survey participants believe we’ll see the housing market and broader economy normalize next year,” Yun said. In addition, Yun expects existing-home sales will decline to 5.9 million in 2022 and housing starts will increase modestly to 1.67 million as the pandemic’s supply chain backlogs subside.”

However, “Regional differences could affect the housing market. Housing prices are likely to moderate nationwide, but regional variation could occur in 2022.” This is true of the Central Florida market as there continues to be heavy “intra-migration” from the northern states and with the pandemic ending, foreign investor interest has gone markedly upward again.