Housing Market Predictions for 2022

Housing Market Predictions for 2022

“Don’t wait to buy real estate. Buy real estate and wait.” – Will Rogers.

 The most popular question real estate agents get asked is, “how is the market?” It is usually based on a general curiosity or a way to start a conversation. These days, it is said with a little bit of fear and panic as we have seen the market swing drastically in the last 2 years. We are here to tell you not to panic. Experts have studied historical trends and times, as well as current data to make educated predictions for where we are now and what to expect for the future.

 The past two years created the biggest change in our market with housing needs changing, unemployment rising and mortgage rates being historically low. Previously, most people based the location preferences of their home search on their job. With people working remotely, people started looking for homes based on where their family and friends lived. Working remotely and being home for an extended period of time created a whole new set of buyers wanting to find a home that met their new needs. Historically low interest rates also created a whole new set of buyers who thought they couldn’t afford to purchase a home in the past. All of this created more buyers than homes available. Higher buyer demand combined with lower home inventory created the perfect storm for a competitive housing market with housing pricing increasing rapidly and quickly.

But Breathe. While there is no crystal ball to know for sure what is going to happen, experts are predicting for things to stay pretty much the same throughout 2022. We will continue to see more buyers than sellers, which keeps it a seller’s market. We will see home prices continue to rise, but at a slower rate and become more stable, which is good news for buyers! Mortgage rates are starting to rise, but are still pretty low compared to historical data. Which means…if you want to sell, now is a great time to sell! If you want to buy, now is a great time to buy!

According to data found by Dave Ramsey’s “Ramsey Solutions”:

“Here’s an overview of what experts predict will happen in the housing market leading into 2022:

To help you put those home prices into dollar signs, the median home cost rose to just over $347,000 in 2021—that’s more than $50,000 higher than in 2020!⁴ And certain months saw even higher median home price spikes. For instance, the median home price was nearly $355,000 in December, which set us up for more sky-high prices leading into 2022.⁵”

While life is constantly changing, one thing we can always count on is…change. Which means, people are constantly needing to buy and/or sell their homes because of these changes – even during job changes, natural disasters, recessions and even pandemics. And we are here to help!