Home buying competition is showing no signs of slowing down so far in 2022, based on the latest Realtor.com Weekly Housing Trends Report. As homes continued to sell more quickly than last year, asking prices accelerated at a double-digit pace and inventory remained limited.
After a period of steady 8.5 to 9% growth in the fall, the median listing price for homes ratcheted back up to a double-digit pace in December. In 2022, not only has price momentum held, so far it has increased. Mortgage rates have risen half a percentage point in the last month as investors anticipate Fed funds rate hikes to begin as soon as next month.
Rising rates have driven a rush on new home sales as buyers try to sign contracts to lock-in rates and beat further cost increases. Realtor.com’s 2022 Housing Forecast expects a slowdown in home price growth to low-single digits for the year as higher rates reduce homebuyer purchasing power, but the median list price hasn’t yet moved in that direction.