Soaring home prices expected to climb at slower pace in 2022
TUCSON, Ariz. (KOLD News 13) - We saw a red-hot housing market throughout 2021. Whether you’re looking at houses in Tucson, around the state of Arizona or even nationwide, experts can all agree this year’s housing market will go down in history.
“Robust sales, very limited inventory and challenging for buyers and sellers looking to find a house,” said Kevin Kaplan, the vice president of marketing at Long Realty.
He said year-to-year home prices rise around 4% but this year we saw prices increase a staggering 20% to 30%. Going into 2022, he expects the market to calm some.
“We don’t think that home prices are going to go backwards and go down,” he said. “They’ll continue just not at that feverish unmanageable rate.”
Gay Coroaton, a senior economist at the National Association of Realtors, expects it to simmer down also.
“Prices will raise at a smaller pace at five to seven percent which is more equivalent to wage growth,” she said.
A low inventory of homes is still an issue.
“The builders are trying to keep up with the new builds but due to the lack of labor and the cost and the scarcity of some of the supplies some things aren’t getting finished,” said Jodi Koch, the Tucson Association of Realtors President for 2022.
She’s hopeful more new homes will hit the market which will help level things out for buyers who continue to face an uphill battle.
“It’s such a struggle for buyers to get into the housing market,” she said. “They need a great professional who knows what they’re doing to take great care of them.”
The typical home value in Tucson is about $295,000 which is a twenty-eight percent increase over the past year, according to Zillow.
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