15 December . 2021
2022 Housing Market Outlook & Trends
Today’s Housing Market Forecasts for 2022
The talk of the town (or country) for the last year has addressed how hot the U.S. housing market has been. 2021 brought us historically low interest rates, a competitive sellers market, low inventory, price increases, and much more. Economists report that the current level of growth is much faster than the 2008 financial crisis as home prices continue to rise as high as 19.8%, according to Fortune.
What does this mean for 2022? Will the housing market boom continue? What trends, home price projections, and forecasting can we expect and prepare for? We’ve gathered the latest to help you prepare and navigate the expected 2022 market.
Housing Prices Level Out
Recently forecasted by Fannie Mae, median home prices are expected to rise 7.9% from now to the end of 2022. While this seems high at first glance, it actually means that the housing market is expected to return to a normal level of price appreciation as it would slow down the high price growth the country has recently experienced. However, Fortune continues to explain other forecasts from Zillow and Goldman Sachs as they predict much higher price increases by the end of next year.
Continues as a Sellers Market
The housing market has been a sellers market all throughout 2021 and according to Forbes, the trend is expected to continue. With inventory and mortgage rates being low, sellers will continue to have the ultimate advantage over buyers - but maybe not to the extreme as what happened in 2021. Despite things leveling out, home price projections are expected to remain a bit higher than what we’ve seen in recent years. Buyers can close a deal they’re comfortable with by keeping a close eye on the market and how it shifts over the next year. If you’re on the hunt for a new home, be sure to check out Estrella’s inventory through our online homefinder.
Interest Rates Uptick from Historic Lows
Historically, we saw some of the lowest interest rates in 2021 compared to ever before and although they currently remain low, it’s expected for them to slowly uptick in 2022. It’s commonly known that interest rates fluctuate and although that will be the case next year too, we likely won’t see the same historic lows that we recently experienced. To ensure you gain the best rate for you and your situation, it’s important to ask your mortgage lender questions about the market before you begin a transaction.
Whether you’re in the home buying market or a real estate agent, it’s important to not only keep a close eye on these trends, but also take them with a grain of salt. They are, at the end of the day, forecasts and projections but it's important to stay prepared and knowledgeable as we enter the new year.
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