It’s 2022! For a minute there, I wasn’t sure if we were going to make it. This is going to be the best year yet!
In the last few weeks I’ve been asked: Will there be more homes for sale? How will rates be? Will prices keep rising? What’s next?
Read what the experts are saying below:
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.”
What Does This Mean for Buyers?
I expect there to be more opportunities than last year. Hopefully, we should see more options available as more homes are listed and some of the peak FOMO intensity of buyer competition starts to ease. Just remember, rising rates and prices are a great motivator for you to find the home of your dreams sooner rather than later, while today’s affordability is still in your favor. Now is a great time to buy, there aren’t as many folks out looking to compete with.
What Does This Mean for Sellers?
I believe this sellers’ market will remain in 2022, home prices are projected to keep climbing (along with inflation), just at a more moderate/regular pace. Selling your house while buyer demand is so high will truly put you in the driver’s seat. In a few months Buyer demand shall pick back up (Winter months are generally colder) and more homes are likely to hit the market.
