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Slowdown in home sales, price growth expected in 2022

Virginia REALTORS’ chief economist predicts a slowdown in home sales and price growth next year after a remarkable performance during the pandemic, according to the trade association’s recently released 2022 Economic & Housing Market Forecast.

“Overall, the job and unemployment forecasts reflect the fact that our economy is still being driven by COVID. By the end of 2022, it is expected that job totals and the statewide unemployment rate will be back close to pre-pandemic levels,” a release from Virginia REALTORS stated.

“While home sales activity in 2021 will surpass even the strong performance of 2020, next year will be a little different, due primarily to rising affordability challenges, continued low inventory, and a slight uptick in mortgage rates,” said Dr. Lisa Sturtevant, the organization’s chief economist. Prices are expected to continue to rise in 2022, though the rate of price growth will slow as demand softens a bit and inventory expands, making it a more typical...

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