Bold 2022 Expert Forecast

There are many varying opinions about how the 2022 housing market will be. We’ve gathered the stands of big housing market names and categorized them on what they have to say about the mortgage rates, the housing prices and the inventory for this coming year.

On mortgage rates: 

According to Jarred Kessler, founder and CEO of EasyKnock, the mortgage rates will definitely go up. Realtor.com recently released a statement that agrees with this stand. They said that despite the improvement of the economy, mortgage rates are expected to go up. This might be helpful in slowing the increase rate of home prices. There’s an expected average of 3.3% increase, according to realtor.com and might even be close to 3.6% by the end of 2022. This is significantly higher as compared to the 2.65% rate in the January’s first week for the past 30 years.

On home prices: 

Realtor.com recent article forecasted an increase of 2.9% for home prices. This is still a slower and lower rate as compated the the 12% rise this 2021. Fortune.com also forecasted a 4.08% rise of home prices by 2022 in the state of California alone.

Unfortunately, renters would not have it easier since realtor.com sees a rental price surge by 7.1% by next year. This is a much higher price increase that would befall renters.

On house inventory: 

2021 has been a strong seller’s market and it is expected to be no different this coming 2022. The number of first-time buyers far exceeds the inventory. Experts agree that there would be an increase of at lest 0.3% but it still could not match the demand for homes.

Other areas of concern: 

Millennials are still expected to be great players in the market. There are 45 million millennials who will be between the ages 26 to 35, of which are the primary homebuying years.

We can also expect that more building companies with help increase the inventory, hopefully giving millennials more options to choose from. The suburbs will also continue to be in demand next year as more jobs continue to be remote and the demand for more space also increases.

The climate would also play a significant part in the housing market. Sellers are more like to invest in homes that are resistant to climate change or add features to current homes that would be more climate-friendly.

Summary

Mortgage rates would increase, house prices would increase and there will be efforts for builders to increase inventory to keep up with the demand.

This might sound challenging for potential home buyers, and it is! The key in winning in this market is having a real estate professional whom you can trust with every aspect of the process.

If you’re still looking for a trusted agent, we’re here to help. Call us today at 925-415-0835!