2022 Real Estate Market Outlook
You're wondering if 2022 is the right time to find your happy place? It is! Find out why...
2021 was another interesting year! The pandemic continued to upend the home buying process. We found that historically low mortgage rates combined with a shortage of inventory created a hot market! Houses sold within hours of being listed, most often for over asking price. I can't predict the future, but I can tell you that market experts are expecting similar trends for 2022, mostly low inventory and fast turnaround.
Here are a few key things to look for in 2022:
Housing Inventory is Poised to Recover Slightly - 2021 gave us a really low inventory level and while we’re still experiencing supply chain troubles and labor shortages, this year shows signs of meaningful recovery. New real estate listings rose by around 5% in 2021 (1) If this continues we’ll be able to expect more properties to hit the market in 2022.
Smaller Home Price Gains on the Horizon - Home values are expected to rise slower in 2022. This could potentially make the market a little better for buyers than last year. Despite these smaller price gains, it’ll still be a seller’s market. (2)
Starter Home Listings Will Grow - The housing industry is shifting toward smaller homes as the share of homes having between 750 and 1,750 square feet has increased about 7% from 2020. (3) Good news for first time home-buyers looking to find their (first) happy place!
Historically Low Interest Rates Continue - Mortgage rates are near all-time lows, (4) but The Federal Reserve is expected to raise interest rates a few times in 2022, meaning mortgage rates will likely rise with them. (5) Finding your happy place earlier in 2022 could mean locking in a very low rate stretching your dollar further.
Cities Are Making A Comeback - Americans moved to the suburbs with the advent of the remote work option brought about by the pandemic. This year we could see many homebuyers look to live in the city again. Housing industry data reveals online searches for urban properties are surging. Additional data show that the urban exodus has slowed considerably, and cities are starting to grow again. (6)
What does all of this mean? To be short and sweet, it’s time to find your happy place! The search might not be easy but it is doable and I can help you through the process.
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