Source: International Banker —
Many market predictions come out at the start of a new year, and if the last couple of years have taught us anything, it’s that the crystal ball of real estate is never crystal clear. Still, with 2022 well underway, we can confidently predict that no bubble will burst, and the housing market, particularly the luxury market, will remain strong. Yes, mortgage rates have begun to climb, and record-breaking price appreciation is starting to slow. However, none of this points to a weakening of the US real-estate market but rather a cooling of the intensely hot market we’ve been experiencing since the second half of 2020.
The latest numbers from November show year-over-year home-price appreciation of 18.8 percent, down slightly from October’s high of 19.1 percent, according to the S&P CoreLogic Case-Shiller Home Price Index. Yet, many markets continue to soar from Phoenix to Miami, seeing price appreciation in November of 32.2 percent and 26.6 percent, respectively.