Home prices continued to reach for the sky in the first quarter of 2022, despite the fact that winter is typically the least expensive time of year to buy. With high prices paired with still-shrinking inventory, a competitive market became even more difficult to navigate.

This report marks two years since NerdWallet began analyzing quarterly home affordability for first-time buyers. The first analysis was the last “normal” quarter before the Covid pandemic sent the country into lockdown — Q1 2020. Since then, prices have risen considerably — up 26% across the nation, after adjusting for inflation. But perhaps even more impactful, the number of listings on the market has plummeted further and further — down 62% nationwide over that two-year period.

The first quarter also saw mortgage rates rising faster and higher than had been forecast for 2022. As we move into the spring/summer homebuying season, rates are expected to continue to climb. This will temper some demand, which may allow price growth to slow. But we’re a long way from pre-pandemic inventory, and current buyers will still have a limited number of listings to choose from.

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