Housing market predictions for 2022 | Rates, prices, inventory – The Mortgage Reports

December 18, 2021 by No Comments

Will the housing market improve in 2022?

The 2021 housing market was a tough one for home shoppers.

Low rates and increased flexibility from working remotely put many first–time homebuyers on the map. But limited inventory, skyrocketing prices, and fierce bidding wars made housing harder to come by.

But things may soon level out to a more ‘normalized’ market, according to real estate experts. We could see competition start to taper off and price growth begin to moderate.

In short, 2022 should be a better market for buyers.

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>Related: How to buy a house with $0 down: First–time home buyer

Housing market forecast for 2022: Overview

We spoke with seven real estate and mortgage experts to get their housing market predictions for 2022.

Most agree the market will remain hot, as it will take a long time to regain inventory. But they also agree competition and prices should moderate somewhat compared to the past year.

Real estate market demand and demographics

Ask Rick Sharga, executive vice president for RealtyTrac, and he’ll tell you that the housing market should continue its strong performance through 2022.

“Demand will continue to be driven by low mortgage rates and demographics. Consider that the largest cohort of millennials is approaching prime age for first–time homeownership,” he says.

“The pandemic has also contributed to the recent boom in home buying, in part due to the ability many employees now have to work from home and to health concerns, which encourages city dwellers – mostly renters – to look for more spacious residences in areas with lower population density.”

Potential for improvement

Paul Buege, president and COO of Inlanta Mortgage, also thinks the market will remain strong. But he foresees prices and demand cooling off at least a little in 2022 compared to the last year or two.

“Positive indicators are hinting to a more favorable housing market in 2022. The heated pace of sales is beginning to show signs of moderation, and this is helping to increase the number of homes for purchase,” says Buege.

“With more homes on the market, prices should begin to moderate. This suggests that the balance between sellers and buyers will shift toward a more normalized market next year.”

Look out for rising mortgage rates

Chuck Biskobing, a real estate attorney at Cook & James, agrees that home …….

Source: https://themortgagereports.com/85263/housing-market-predictions-2022

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