First Things First
First off, we just want to be clear that the insights and opinions herein are just that – we’re not claiming to be experts, just an educated opinion at best. The fact of the matter is, no one can offer anything more, for 2022, as we’re living in unprecedented times!
COVID-19 and all its variants have not only killed millions globally over the past two years at will but also wreaked havoc on the housing market, destroying any shred of reliability on past behavior. So, a lot of variation goes into the 2022 housing market predictions.
Price Growth Factor
Not helping things in the mix, we also have a huge problem with inflation and affordability challenges, as well. Our economic growth is in high gear, reflected in the rate of home price growth. In fact, according to the National Association of Realtors, in 2021 the median price rose to $362,800 in June, which is an all-time high and record home price growth period. Low mortgage interest rates combined with dwindling housing inventory made prices rise higher quickly.
NAR Predictions
As we all saw with the craziness of the housing market in 2021, homes listed for sale were only on the market for an average of 15 days. Lawrence Yun, Chief Economist at the National Association of Realtors, predicts mortgage rates rise to 3.7% in 2022, with persistent inflation on its heels. Median home prices are expected to rise 5.7% in 2022, and existing home sales will decrease from 6 million in 2021 to 5.9 million for this year.
Assorted Predictions
At Realtor.com, they are predicting a 2.7% home price appreciation on existing homes for this year. They expect mortgage rates to be at about 3.3% most of the year, but 3.6% towards the end. They expect home sales to increase by 6.6%. The company Redfin says the housing market is going to stay as unpredictable as it was in 2021 but does expect things to balance out and slow down to a more moderate pace. Home prices are predicted to increase by 3%, and interest rates are expected to rise to 3.6%.
MBA Predictions
The Mortgage Bankers Association predicts rising mortgage rates to get to 4% by the end of 2022. Real estate housing markets everywhere have been suffering from low inventory, a problem unlikely to resolve itself anytime soon. However, the MBA thinks home builders will be more successful with material shortages in 2022, enabling the housing supply to meet demand more effectively.
Bankrate.com’s Predictions
Bankrate’s Chief Financial Analyst predicts the real estate market will slow down, partly due to increasing interest rates. He says we’re looking at around 3.75% interest by the end of 2022, with an average rate of 3.5% for most of the year. The Federal Reserve is trying to combat inflation with what they can, unfortunately, part of which is raising interest rates.
Additional Information
Real estate market data shows that many would-be first-time homebuyers are effectively priced out, and are planning to wait until prices fall again. In the meantime, it gives these home shoppers a chance to save a bigger down payment, and calculate monthly mortgage payments better.
Home Ownership
The bottom line is, we need to bring more affordability to the current seller’s market environment of skyrocketing home prices or risk eliminating an entire generation of prospective buyers. The housing market is a reflection of economic growth, but should always be a possibility every American can achieve.
Read more: How Property Values are Determined
Need to Sell Your House Fast?
While most of the time the decision to sell your house is made carefully over time, life has a funny way of throwing an ill-timed curveball onto the scene. Suddenly, long-term plans have changed, and you need to relocate quickly. This kind of unexpected event can happen to anyone, at any time, and for a myriad of reasons.
Sell Your House Fast – Mississippi
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