Housing Market Predictions In 2022
As the year winds down and many real estate agents and clients look into the new year, many are wondering what is next. Will more buyers be priced out because of affordability? Can mortgage rates climb past 3% and stay? Will home prices continue to rise? What about the inventory issues? There are many different experts who are making their predictions for the housing market coming into 2022. Below is a look at housing market predictions for 2022 are.
Odeta Kushi, Deputy Chief Economist, First American:
“Consensus forecasts put rates at about 3.7% by the end of next year. So, that’s still historically low, but certainly higher than they are today.”
Danielle Hale, Chief Economist, realtor.com:
“Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise. And with more than 45 million millennials within the prime first-time buying ages of 26-35 heading into 2022, we expect the market to remain competitive.”
Lawrence Yun, Chief Economist, National Association of Realtors (NAR):
“With more housing inventory to hit the market, the intense multiple offers will start to ease. Home prices will continue to rise but at a slower pace.”
George Ratiu, Manager of Economic Research, realtor.com:
“We also expect a growing number of homeowners to bring properties to market, taking some pressure off high prices and offering buyers more options.”
Mark Fleming, Chief Economist, First American:
“Strong demographic demand will continue to act as the wind in the housing market’s sails.”
Buyers And Housing Market Predictions
For buyers, there is a lot to be excited about coming into 2022. With the turn of the new year means there is less time away from work and less holidays. There will be an uptick in home listings as everyone gets back into the swing of things. With more listings comes more inventor, and with more inventory comes more options for buyers. Because there will probably be more options available for buyers, the competition for the same homes will hopefully decrease. Buyers are already being reprieved of the struggles to get offers accepted. Rising rates, on the other hand, might be detrimental for homebuyers. Rising rates should be used as a good motivator to actually get into a new home. Mortgage rates will continue to tick up coming into the new year, so be on the look out for higher rates.
Sellers In The New Year
Nothing is going to change anytime soon for sellers. This is still a seller’s market and will remain a seller’s market for the foreseeable future. Home prices are still projected to continue to rise. With home prices predicted to rise, even at a slower rate, sellers will still make out with plenty of equity in their homes. Selling in today’s market still draws a lot of demand from many different buyers, leading to homes selling quickly. This trend will continue, probably well into 2023 even. With more listings hopefully becoming available, the opportunity to sell without questions has a limited time window. While this time window is longer than most people think, it will eventually end. Take advantage of your equity now and sell when buyer demand is strong. Today’s market has favored sellers now more than ever, so getting in front of the trend to take advantage is wildly beneficial.