Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research may determine where and how companies appear. Learn more about how we make money.

House sitting on dollar bills mountain
Money; Getty Images

Rising mortgage rates may have tempered the housing market in the last half of 2022, but home prices hit record highs for the year as a whole.

The median home sale price in the United States reached an all-time high of $386,300 last year, according to data released Friday by the trade association National Association of Realtors (NAR). That's an increase of more than 10% from 2021's median of $346,900.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
In the market for a new home? Find out how much you can afford today.
A Mortgage Expert can clear up your doubts and give you the necessary information to take this big step. Click on your state and make it happen.
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas
View Today's Rates

What the research says

The NAR report shows that home prices are up at the same time that the number of houses sold has declined sharply.

  • Since 2019, the year leading up to the pandemic’s home-buying frenzy, to the end of 2022, median home sale prices have increased a whopping 42%.
  • The number of houses sold in the U.S. in 2022 dropped to about 5 million, the fewest recorded since 2014 and a 17.8% decline from 2021. The last time annual sales dropped by that much was during the 2008 housing crisis.
  • Sellers still closed 2022 out strong despite receding home sales. The median home sale price increased 2.3% from November to $366,900 for the month of December — even though the number of houses sold declined 34% compared to December of 2021.

What it means for buyers

  • NAR Chief Economist Lawrence Yun said NAR expects sales to pick up again soon now that mortgage rates are coming down. He added that 2022 was a “transition” year, and the playing field will likely even out a little going forward.
  • A recent report from real estate marketplace Zillow found that the majority of homes sold below list price in November, potentially signaling a power shift favoring buyers in the new year.
Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Buy your new home with more convenience and less hassle
A Mortgage Expert at Quicken Loans (NMLS #3030) can lend you a hand for a smoother process. Your dream home is possible. Click below to make it happen.
View Rates

More from Money:

Simple Ways To Invest in Real Estate

7 Best Homeowners Insurance Companies of 2023

Here Are the 10 Best Cities for First-Time Homebuyers in 2023