Will this year’s housing situation be quite the crazy year we had last year? It’s looking like it’s going to be similar.
It’s still a competitive seller’s market as demand, especially with first-time home buyers, will exceed inventory. We’re expecting home sales to be on the rise, but with that, interest rates and home prices will also go up.
As affordability continues to be a challenge, we can see home prices set more records, up 2.9%. Rent will outpace home prices at 7.1%. And mortgage rates will rise 3.6% by year end.
Despite this, we’re looking for 2022 to have the second highest sales level in last 15 years, surpassed only by 2021.
In many cases, new homes are only a possible option if you can wait for construction to be completed. But, the good news is that the inventory shortage should get slightly better in general, with home inventory growing about 0.3%.
Homebuyers, who will trend to be looking to the suburbs for housing, will still find a load of competition in the entry level price tiers. Coupling this with rising costs of the home and mortgage rates, buyers will want to really examine their budgets and bottom line.
Homeowners who are looking to sell will still see well-priced homes go quickly and for asking or more, they need to be aware of where they will be moving. More than 1 in 4 homeowners choose not to sell because of the difficult possibilities in finding their next home.
Although it seems we’ll be seeing much of the same as we saw last year in the 2022 housing market, do not be dismayed. They are homes out there to purchase, you just have to be smart and strategic. And working with an experienced Realtor, like our agents here at Wolfe & Company, will give you confidence when buying or selling your next home.
Adapted from Realtor.com