After the last two years of a crazy real estate market, with prices rising, an all-time low inventory, and record-breaking interest rates, we are all wondering what the year ahead may look like. The experts have come together to predict what the 2022 housing market may look like, and it may have some of you surprised. The panel of experts includes Fannie Mae, Freddie Mac, MBA, NAR, Pulsenomics, and Zelman.
Mortgage rates are predicted to rise.
2021 saw low mortgage rates, averaging at just 2.93%. In 2022 the experts are reporting that mortgage rates will rise, but only by 3.3-4.0%. Historically, these rates are expected to stay relatively low.
While buyer demand remains high and inventory remains low, it’s projected that prices will continue to rise. On average, experts are predicting an increase of 5.1%, while some are saying it could increase by as much as 7.4% and as low as 2.8%.
Home sales are projected to be strong.
Experts are expecting the market to remain strong while people are still interested in buying homes. Home sale forecasts are between 6.5 and 7.2 million.
Some highlights and resources:
- What does the coming year hold for the housing market? Here’s what experts project for 2022.
- Mortgage rates are projected to rise and so are home prices. Experts are forecasting buyer demand will remain strong as people try to capitalize on rates and prices before they climb, creating another strong year for home sales.
- Let’s connect so you can make your best move in the new year.