If you’re considering buying or selling real estate in 2022, you’re wondering what the market will bring. As always, there are a number of factors that play into how fast you’ll sell your home, what price your property will bring or how likely you are to find a suitable property at the right price in the right neighborhood.
While no one can predict what the future will look like, experts are making their predictions and investors are placing their bets.
Here are a couple points of general consensus….
Mortgage rates:
We are coming out of a period of shockingly low mortgage rates, but rates will stay historically low through much of 2022. The Fed is phasing out their purchases of securities that keep cash flowing into mortgages. Every indication is that the Fed will raise interest rates to help curb inflation.
Supply of homes:
Generally, experts believe that the housing shortage will continue into the foreseeable future, and that supply of homes will remain low for 2022.
Home values/prices:
Experts generally agree that housing prices will continue to rise in 2022, but at a lower rate than 2021 and far away from the record pace of 2020.
Here are a few references for further reading as you consider your own situation:
Forbes: Experts Predict What The Housing Market Will Look Like In 2022
Although affordability challenges will come from rising prices and mortgage rates, rising rents, which are projected to increase 7.1% will be a strong motivator for many hopeful first-time buyers. On top of this, all home shoppers will have some advantages that stem from a competitive jobs market. Incomes are projected to increase by 3.3% and with many employers looking to attract and retain talent without impacting costs, we expect workplace flexibility will continue.
Forbes
That deceleration could be the start of a bigger cooldown. At least that’s what Realtor.com, a real estate listing site owned by News Corp., is forecasting. By the end of 2022, the site is predicting U.S. home values will climb just 2.9% as rising mortgage rates take some steam out of the market. That would represent both the smallest annual uptick since 2012 and also a big-time slowdown from the 19.5% U.S. home price jump posted in the S&P CoreLogic Case-Shiller Index from September 2020 to September 2021.
Fortune
The National Association of Realtors® (NAR), holding its annual conference in San Diego, heard from chief economist Lawrence Yun about the prospects for residential real estate in 2022. Yun told NAR members that the market, which performed exceptionally well during the height of the pandemic, continues to be promising.
Mortgage Daily News
As they say with politics, all real estate is local. If you’re looking to buy or sell real estate in Berwyn, Tinley Park, Chicago, Oak Park, Forest Park, River Forest, Naperville, Aurora etc., finding the right real estate agent and lawyer to help you negotiate the complexities of your deal is the most important first step. Please reach out to us to help you find the right agent for your needs.
