CORPUS CHRISTI, Texas — The recent surge in home prices finally seems to be slowing down.
This is a trend that realtor.com expects to continue into 2022.
"We will see some relief, in a sense that will see slower home price growth," said Danielle Hale, chief economist for Realtor.com. "But for buyers, the home prices will still rise in 2022 so you're going to have to be prepared to adjust to a slightly higher budget in order to compete in the housing market."
Home inventory is expected to start to increase slightly, because more people are interested in selling their homes.
New construction is also ramping up again, with a projected increase of 5 percent in 2022.
Mortgage rates are forecast to climb to 3.6 percent by the end of next year. And if you're a renter, rent is expected to grow at a faster rate than home prices.
That could make buying a home more affordable than renting.