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Buyers and sellers alike wonder what’s next for the housing market as we move forward into 2022. Will there be more homes on the market? Are home prices going to continue to rise? Are mortgage rates going to increase? We turn to the experts to find out. Please take a look at what they predict will happen in 2022.
Odeta Kushi, Deputy Chief Economist, First American:
“Consensus forecasts put rates at about 3.7% by the end of next year. So, that’s still historically low, but certainly higher than they are today.”
Danielle Hale, Chief Economist, realtor.com:
“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.”
Lawrence Yun, Chief Economist, National Association of Realtors (NAR):
“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.”
George Ratiu, Manager of Economic Research, realtor.com:
“We also expect a growing number of homeowners to bring properties to market, taking some pressure off high prices and offering buyers more options.”
Mark Fleming, Chief Economist, First American:
“Strong demographic demand will continue to act as the wind in the housing market’s sails.”
How Does This Affect Buyers?
For 2022, there is hope. Increasing inventory and easing buyer competition should broaden your options in the near future. It is essential not to forget that rising interest rates and prices are an excellent reason for finding the home of your dreams sooner rather than later to take advantage of the affordability that exists today.
How Does This Affect Sellers?
There’s no doubt that this sellers’ market will persist in 2022 because home prices are expected to continue rising, just at a slower rate. When there is such strong buyer demand for your house, you will take command of the sale. However, don’t wait too long. The window of opportunity to differentiate yourself from the crowd will not last forever since more listings are expected to become available. If you plan to sell your home in the coming year, work with a Denver real estate agent who understands your local market and current inventory conditions.
This may be the year you decide to buy or sell. Are you interested in hearing more about the unique opportunities available to you in today’s market? Let’s connect.