Prospective home buyers in the United States can expect a bit less sticker shock in the coming year, according to a real estate economist. “The housing market looks to move from ‘super-hot’ to ‘warm’ with markedly slower price gains,” said Lawrence Yun, chief economist for the National Association of Realtors.

The NAR is out with a new report that finds the median price for a home climbed to $357,900 in the second quarter of 2021, a jump of 22.9 percent over the same period the year before. The quarterly report tracks 183 metro areas across the country. Only one experienced a drop in prices from 2020; 94 percent showed double-digit increases.

Fueling the home-buying demand are low interest rates and increasing numbers of people working from home during the pandemic – and looking for more space to do that. The NAR’s Yun said the spectacular gains are unlikely to repeat in 2022.
 

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