The real estate market enjoyed an outstanding year, with exceptionally low mortgage rates, the highest yearly increase in single-family housing rents and prices, historically low repossession rates, and the most home sales in 15 years.
The substantial price increase, lack of goods, and high demand are all clearly predicted. Even in some of the country’s most costly marketplaces, tier-one markets, this does not seem to be decreasing. What is the situation of the housing market right now? How is the market performing? Is there a chance that interest rates will continue to climb or that home prices will continue to rise?
Housing Market Predictions for 2022
Last year, the housing market burst like fireworks, and many of those sparks may continue to flare in 2022. Experts continue to expect job recoveries, stable mortgage rates, and the law of demand and supply all operating together to drive up house sales.
One of the most commonly held projections for the property market in 2022 is that supply will stay tight, but price appreciation will be slower than it has been this year. While listings are expected to increase in the summer and spring, it is uncertain whether they’ll be sufficient to meet demand. The real estate market has been especially strong in 2021, with strong demand for homes in nearly every corner of the nation in 2022, a similar trend will be replicated.
Home sales increased in September, October, and November of 2021, the final four months of the year. Even while sales fell somewhat in December, they were still higher than the previous year. Buyers are still rearing and ready to enter the market since there is high demand and little availability.
Here’s a rundown of what analysts believe will happen in the housing market in the years running up to 2023:
To put those house prices into monetary terms, the median home cost grew to just over $346,900 last year — more than $50,000 more than in 2020. Certain months witnessed significantly larger increases in median home prices. For example, the median home price in December was $358,000, indicating that we are on track for even higher prices in 2022.
However, mortgage rates have already begun to rise in 2022. Mortgage rates, like everything else, are impacted by the economy and inflation. In addition, the Federal Reserve has stated that it intends to hike interest rates this year in order to reduce inflation.
While that action alone may not have a direct influence on mortgage rates, the overall shift in the Fed’s policy will almost certainly result in higher interest rates for all borrowers. That’s a bummer since it implies new purchasers will wind up paying more for their homes in the long run. Before selling or buying a house, it is critical to understand the buyer’s market vs seller’s market first.
Endnote
The majority of markets appear to be slightly slow in terms of seller traffic and inventory, implying that buyers will have to work harder or wait a bit longer to discover their ideal property. It is critical to keep in mind that these figures are likely to shift as specialists analyze fresh data. However, in 2022, house sales will most likely remain fairly the same, interest rates will most certainly rise, and home prices will most likely continue to grow, but hopefully at a slower pace.
