Skip to main content

Zillow Economists: 2022 Home Sales Will Be Better Than Any Year Since The Housing Crash

Navi Persaud
Dec 08, 2021
Photo of candles revealing the year 2022.

Zillow economists are predicting a heightened year of home sales in 2022, according to a recent report.

Despite the increase in economic pessimism reported by Fannie Mae's Home Purchase Sentiment Index, Zillow economists are still forecasting an 11% increase in home values and more home sales than any year since the housing crash for 2022.

According to Zillow economists, the strong sellers market will persist next year and flexible work conditions will continue to shape housing decisions. 

“Zillow’s forecast calls for 11% home value growth in 2022. That’s down from a projected 19.5% in 2021, a record year-end pace of home value appreciation, but would rank among the strongest years Zillow has tracked,” according to the report. “Existing home sales are predicted to total 6.35 million, compared to an estimated 6.12 million this year. That would be the highest number of home sales in any year since 2006.”

The reported states that more Gen Zers and millennials will buy a second home before a primary residence.

“Young people today are savvy watchers of the housing market, in part because of time spent Zillow surfing,” according to the report. “Purchasing a 'second' home in a market more affordable than the one they live in is a way to break into the market and start building equity while mortgage rates are low, possibly teaming up with friends or family to lessen the financial burden.”

Meanwhile, Zillow economists expect the renovation boom to continue well into 2022, as more buyers make compromises on their purchases due to growing home prices and mortgage rates. On the other side of the spectrum, the report doesn't bode well for new construction gains. In fact, the report expect builder efforts to be spoiled by supply chain snags and labor shortages that are already limiting progress in the sector. 

Published
Dec 08, 2021
Loans In Forbearance Continued To Decline In December

The Mortgage Bankers Association’s (MBA) new monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by 26 basis points from 1.67% of servicers’ portfolio volume in the prior month to 1.41% as of Dec. 31, 2021.

Analysis and Data
Jan 18, 2022
Home Builder Confidence Dips Due To Inflation And Supply Chain Concerns

Home builder confidence in the market for newly built, single-family homes fell by one point to 83 in January 2022, according to the National Association of Home Builders and Wells Fargo's Housing Market Index report.

Construction
Jan 18, 2022
Redfin: 3 In 5 Homes Faced Bidding Wars In December 2021

The holiday season didn't stop homebuyers from entering bidding wars, according to a new report which revealed that three out of five home offers faced bidding wars in December 2021.

Analysis and Data
Jan 18, 2022
Funding For Multifamily Affordable Housing Reaches Its Highest Volume In 2021

The funding of multifamily affordable housing rose more than 23% in 2021 to its highest volume in history.

Analysis and Data
Jan 17, 2022
Global Alternatives Outlook For Investors In 2022

The report, “Seeing the Forest and the Trees,” encourages investors to consider megatrend opportunities across alternative asset classes.

Analysis and Data
Jan 17, 2022
Home Sales Post Largest Monthly Decline Since May 2020

Lack of inventory cited as December 2021 home sales fall 3.6% from November and 11% from last year.

Analysis and Data
Jan 17, 2022