The real estate market has had an amazing 20 months. While it has allowed sellers to sell their homes more quickly and increase their profits, it has left some potential buyers wondering when they will get their chance at homeownership. Low housing inventory during the pandemic has led to plenty of interested buyers being unable to purchase a home. Some have even been priced out by record-setting price growth. Is it time for things to settle down now?
In his talk at the Realtors®’ 2021 REALTORS® Conference & Expo in San Diego, California, NAR Chief Economist Lawrence Yun made some 2022 real estate market predictions: “The housing sector’s success will continue, but I don’t expect next year’s performance to exceed this year’s.”
Yun foresees mortgage rates increasing along with inflation this coming year. He also believes that we may see more home sales than pre-pandemic levels, but that it will likely not be at the same pace as the past year. The hope is that there will be additional housing inventory on the market, which should ease bidding wars and increase buyers’ chances of landing a home. The reason for this increased inventory is two-fold. First, new home construction has continued (albeit slowly) throughout the pandemic, which should lead to additional listings soon. Second, forbearance programs have allowed many homeowners to stay in homes they could no longer afford. With those programs coming to an end, there may be increased incentives for those homeowners to list their homes.
2022 is promising to be an interesting year. If 2021 hasn’t left you in your dream home, hold out hope! 2022 real estate market predictions bode well for potential homeowners! Contact me, and let’s create your wish list so you can be the first to hear about homes that meet your needs.