Consumer desire for homeownership paired with a low supply of for-sale homes were the main contributors to a red-hot housing market in 2021.

However, the data vendor said that the market is beginning shift. Mainly, that home price gains, which are predicted to start 2022 above 10%, will slow to 3.5% by December 2022.

The perfect storm of supply and demand pressures in 2021 pushed price appreciation to an average of 15% for the full year, up from the 2020 full year average of 6%. The reason for supply pressures in 2021 in part stemmed from supply-chain delays and the skyrocketing of lumber costs, delaying the building of new houses.

A report published by Redfin this week found that overall inventory dropped to a record low in December, with just 1.8 months of supply.

Meanwhile, last month, Naples, Florida, logged the highest year-over-year home price increases at 37.6%, while in Punta Gorda, Florida, home prices grew by 35.7%, CoreLogic’s report found.

On a state-by-state basis, the Southern, Southwest and Mountain West regions dominated the top three spots for national home price growth last year, with Arizona ranking first place at 28.4%.

Florida ranked second with 27.1% home price growth and Utah came in third at 25.2%, the report said.