Residential Real Estate Appreciation Surge




The Business Journals analyzed home-value data for the 100 largest metropolitan areas, as tracked by Zillow, between Dec. 31, 2020, and Dec. 31, 2021. The U.S. housing market, across all 933 markets analyzed by Zillow, saw values jump 19.6% in that period, but most of the largest metro areas outpaced that rate of growth — some by a wide margin.

In Greater Nashville, prices surpassed the national average with a 27.08% increase, ranking No. 17 out of the top 100 largest metros.

The adoption of remote work could shake up where people and jobs move to next, in 2022 and beyond, and ultimately create more demand in the Sun Belt, the Midwest and Mountain West regions. Some overlooked or off-the-beaten path housing markets may also provide savings for first-time homebuyers and renters that are more mobile than ever.

The 2022 housing market is already off to a competitive start with inventory, once again, proving to be the biggest headwind. In their latest Housing Market Update, Redfin found home listings across the U.S. fell 12% year over year, which sent the total number of homes for sale down 29%, in the four-week period ending Jan. 16.

Meanwhile, mortgage rates are rising quickly. In fact, 30-year mortgage rates were up to 3.56% — the highest level since March 2020, the official start of the pandemic — this past week. It's forecasted among economists that rising mortgage rates could ease demand for homes, but mortgage-purchase applications were up 8% week over week for the week ending Jan. 14.




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