2022 Market Outlook
What does the new year have in store for the housing market?
After the tight inventory of 2021, this year shows meaningful recovery. New real estate listings rose by around 5% in 2021.1 If this trend continues, expect more properties to hit the market in 2022.
With mortgage rates near all-time lows2, buying now may mean locking in a very low interest rate. While home prices are high, the low interest rates make it a much more affordable time to buy a higher-priced home. Although mortgage rates are expected to rise in 2022, they still remain historically low.
Home values are expected to rise slower in 2022, which might make the market a little better for buyers than the previous year. However, despite these smaller gains, the market in most areas will still continue to favor sellers. 3
Housing inventory is shifting towards smaller homes as the share of homes having between 750 and 1,750 square feet has increased about 7% from 2020.4 This could be good news for millennials looking to purchase a starter home.
Are you considering buying or selling this year? Give us a call! We will help you through every step of the process.
SOURCES: 1. Brandon Cornett, “Why the U.S. Housing Market Might Be Better for Buyers in 2022,” HomeBuyingInstitute.com. 2. Alisa Wolfson, “Here’s exactly how much economists think home prices will rise in 2022 — and whether you should buy now,” MarketWatch.com. 3. Brandon Cornett, “Housing Forecasts for 2022 Predict Another Year of Steady Price Growth,” HomeBuyingInstitute.com. 4. Sabrina Speianu, Danielle Hale, “August 2021 Monthly Housing Market Trends Report: Seller Activity Warms Up as 432,000 Newly-Listed Homes Hit the Market,” Realtor.com.