The Outlook For 2022's Real Estate Market

There is some interesting speculation about this year’s real estate market landscape

The new year has just begun and many have been wondering what is to come for this year’s real estate market. For roughly the past year and a half or so it has been less typical as we have been dealing with changes caused by the pandemic along with limited inventory and a stead increase in home prices. Here are some projections by select economist experts about the forecast.

Realtor.com’s Chief Economist, Danielle Hale, states “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.”

The National Association of Realtors Chief Economist, Lawrence Yun, comments on inventory stating “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.”

Deputy Chief Economist of First American, Odeta Kushi, offers a prediction on rates. “Consensus forecasts put rates at about 3.7% by the end of (the) year. So, that’s still historically low, but certainly higher than they are today.”

Sellers

For sellers, it is probable that this year will continue to remain a market in their favor with home prices on the rise, but maybe at a slower pace. Demand will likely stay strong so seller’s will have a leg up in the marketplace. However, don’t wait to list for too long as inventory may start increasing which will help leverage buyer’s confidence.

Buyers

For buyers, things could be looking up in the future with regards to increasing inventory levels. This would help mitigate the competition when looking for the perfect home. Home prices and interest rates may still rise but with affordability in buyer’s favor today it is best to not put off a home purchase.