As we move into 2022, both buyers and sellers are wondering,
what’s next? Will there be more homes available to buy? Will prices keep climbing?
How high will mortgage rates go? For the answer to those questions and more, we
turn to the experts. Here’s a look at what they say we can expect in 2022.
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
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
Lawrence Yun, Chief Economist, National Association of
“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
Mark Fleming, Chief Economist, First American:
“Strong demographic demand will continue to act as the
wind in the housing market’s sails.”
What Does This Mean for Buyers?
Hope is on the horizon for 2022. You should see your options
grow as more homes are listed and some of the peak intensity of buyer
competition starts to ease. Just remember, rising rates and prices are a great
motivator for you to find the home of your dreams sooner rather than later so
you can buy while today’s affordability is still in your favor.
What Does This Mean for Sellers?
Make no mistake – this sellers’ market will remain in 2022
as home prices are projected to continue climbing, just at a more moderate
pace. Selling your house while buyer demand is so high will truly put you in
the driver’s seat. But don’t wait too long. With more listings projected to
become available, your ideal window of opportunity to stand out from the crowd
won’t last forever. Work with an agent who knows your local market and current
inventory conditions to ensure you have the support you need to make an
educated and informed decision about selling in the coming year.
If you’re thinking of buying or selling, 2022 may be your
year. Let’s connect to discuss your goals and the unique opportunities you have
in today’s housing market.
Source: Real Estate with Keeping Current Matters