Wealthy Living

14 Big Trends to Expect in the US Housing Market

The COVID pandemic impacted several aspects of the housing market in the US. Mortgage rates plunged to record lows, and the price of homes increased dramatically. As a result, Americans bought larger homes in record numbers.

In a post-pandemic world, the housing market could cool off significantly following record-breaking conditions in 2020 and 2021.

People were relocating to suburbs from big cities even before COVID, the pandemic, however, accelerated this process. In many instances, people could do jobs remotely, increasing a trend away from inner-city living.

The pandemic is a good example of circumstances coming together to push housing market prices to historical highs, and they've remained elevated without any indication of a drop.

Trends to Expect in the Housing Market

1) Mortgage Rates to Increase

It is not only gas prices that are rising. Although the war in Ukraine briefly lowered interest rates, other factors are pushing the rates higher.

2) Decelerating Price Appreciation

Since March 2020, the pandemic's start, the median price of homes sold by Realtors has increased by 29 percent, from $280,700 to $362,800. The price has remained steady at $350,000 since then.

Lawrence Yun, the National Association of Realtors' chief economist, predicts a temporary drop in home sales after a spectacular year for housing in 2021 and 2020.

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