As we move into 2022, both buyers and sellers are wondering, what’s next? Will there be more homes available to buy? Will prices keep climbing? How much will mortgage rates increase? One way to provide your clients with answers to those questions and more is looking to the experts. Here’s a glimpse at what some say we can expect in 2022:
Odeta Kushi, Deputy Chief Economist, First American:
“Consensus forecasts put rates at about 3.7% by the end of next year. So, that’s still historically low, but certainly higher than they are today.”
Danielle Hale, Chief Economist, realtor.com:
“Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise. And with more than 45 million millennials within the prime first-time buying ages of 26-35 heading into 2022, we expect the market to remain competitive.”
Lawrence Yun, Chief Economist, National Association of Realtors (NAR):
“With more housing inventory to hit the market, the intense multiple offers will start to ease. Home prices will continue to rise but at a slower pace.”
George Ratiu, Manager of Economic Research, realtor.com:
“We also expect a growing number of homeowners to bring properties to market, taking some pressure off high prices and offering buyers more options.”
Mark Fleming, Chief Economist, First American:
“Strong demographic demand will continue to act as the wind in the housing market’s sails.”
What Does This Mean for Buyers?
Hope is on the horizon for those looking to purchase in 2022. They should see options grow as more homes are listed and some of the peak intensity of buyer competition starts to ease. They should be reminded that rising rates and prices are a great motivator to find a home sooner rather than later, so a purchase should occur while today’s affordability (rates) is still in their favor.
What Does This Mean for Sellers?
Make no mistake – this sellers’ market will remain in 2022 as home prices are projected to continue climbing, just at a more moderate pace. Selling a house while buyer demand is so high will truly put them in the driver’s seat. They should not wait too long, however. With more listings projected to become available, the ideal window of opportunity to stand out from the crowd will not last forever.
If your client is thinking of buying or selling, 2022 may be their year. Market yourself as an agent who knows the local market and current inventory conditions to ensure your clients have the support they need to make an educated and informed decision about selling or buying in the coming year.