Top 5 real estate markets for 2022
The U.S. real estate markets have gone through a major shift during 2021. The global pandemic and the impact it had upon the world’s economy left a significant trace on real estate statistics. Home prices across most of the US went up while the inventory fell below expected records. While the buyer’s market in 2022 may be less challenging, there is no doubt that the demand for housing will remain strong, mainly due to remote work trends caused by the pandemic. According to CBS News, the 2022 forecast predicts that smaller second-tier cities are likely to experience the largest price increases and home sales as well, as they are more affordable and offer more space compared to larger cities in the US. The same source reveals that average home prices in top real estate markets are expected to go up by 7.4% compared to this year, which is more than twice the national pace of 2.9%. This goes to show what a huge turbulence is ahead of the real estate markets in 2022. With that said, here’s a list of the top 5 real estate markets for 2022.
#1 Las Vegas
As of spring 2021, housing prices in the Las Vegas Valley grew steadily. Even back then, the median home value in the Las Vegas area grew by 8.6% compared to the previous year. Looking into 2022. The Las Vegas real estate market will experience a positive growth with a 10.5% increase with Californians looking for affordable housing and zero state personal income tax. The home prices will continue to grow because the housing demand is increasing while the supply remains low. The Ridges Las Vegas is the most expensive community for million dollar homes and selling out as they are a deal for Californians. The same source reveals that Las Vegas home prices have grown by 23.5% over the past year and Las Vegas still is the most affordable at $555,000 average sales price.
#2 Boise Idaho
Realtor.com predicts that the Boise ID housing market will likely be at the top of US markets in 2022. A major shift in the Boise market took place in the third quarter of this year when the property prices suddenly spiked up more than 30%. As CBS News writes, Boise quickly became the least affordable housing market in the United States with the median home price of nearly $535 000. Still, despite this sudden growth, the Boise housing market is attracting people from larger cities such as San Francisco, which still has significantly higher median home value compared to Boise. Home prices in Boise ID are expected to grow by 17.9%, which places this real estate market on top of most forecasters’ lists for the highest-ranked markets in 2022. Besides being a good fit for people in the tech industry, Boise also attracts those who prefer an active lifestyle with plenty of outdoor activities including hiking and skiing.
#3 Bozeman Montana
For those wondering if it’s a good time to invest in real estate in Bozeman, Montana,, the short answer is yes if you’re in it short-term. The median property price in Bozeman equaled $474 049 in mid 202. Forecasts predict that the median property price is expected to increase in the long run. Although the growth will be steady in 2022, the median property price is expected to grow to $569 896 by the year 2026, which makes this market ideal for short term investments. However, if we look at the near future, what you can expect in the Bozeman Montana real estate market in the upcoming year is a shortage of supply. The demand will grow rapidly as the home price appreciation continues to skyrocket. According to CoreLogic, the overall single-family home market will be undersupplied by 4.35 million units in 2022.
#4 Salt Lake City Utah
Salt Lake City has earned quite a favorable spot on the lists of upcoming real estate markets in 2022. This year, the median home price in Salt Lake City equaled $564 062. Forecasts predict that the home sales change in 2022 will equal +15.2%, whereas the median home value will grow by 8.5%. The demand for housing in Salt Lake City is growing mostly due to an increase in the number of remote workers who are coming in from California and Colorado for the sake of lower costs of living. Similarly to Boise, Salt Lake City is attractive to people in the tech industry thanks to Lehi, an area 25 miles away from Salt Lake with a booming tech industry (home to Adobe and eBay facilities). This area is known as Silicon Slopes.
#5 Spokane, Washington
Spokane is another real estate market that recorded a steady growth throughout 2021. What makes it even more interesting to look at are the favorable predictions for the upcoming year. The city offers a great infrastructure and easy access to numerous amenities. This makes it attractive to people who are looking for the luxury of living in a bigger city while still having a somewhat decent cost of living. With great public schools and transportation systems, Spokane is a great area to move to from more expensive states such as California. When it comes to 2022 market predictions, the home prices in Spokane, Washington are expected to grow by 7.7% in the upcoming year, whereas the home sales change will equal to +12.8%. The current median home price in Spokane is $419 803.
Overall, 2022 is expected to be an interesting year from a real estate perspective. The housing demand is inevitably going to grow, which will push the US markets even further down when it comes to lacking supply. However, this won’t change the fact that buyers will be eager to hunt for good deals in areas, like Las Vegas, that are attractive based on costs of living and overall quality of life.
Story by William Margita, a realtor at Berkshire Hathaway.