Housing Market Trends to Look for in 2022
It’s certainly no secret that the housing market has been on fire in 2021. Sellers, buyers and realtors have all been working overtime in one of the craziest markets in recent memory. This year is wrapping up fast and 2022 is just around the corner. Some have speculated that things may change in the new year with the real estate market. Our team has done the research and compiled a list of housing market trends to follow for 2022. Keep reading more below!
Let’s first take a look at why the market was so hot in 2021. With the pandemic, more people than ever have switched to working from their home. This factor, coupled with historically-low mortgage rates, have made for an extremely competitive real estate market. Demand has been incredibly high, which in turn has made housing inventory low. Most real estate transactions became an all-out battle, with over 54% of homes selling for above asking price (according to Redfin.com). So what’s on the horizon for 2022?
Back to Normal..ish
Most buyers are thinking to themselves that something has to give.. and they are right, within reason. Experts are predicting that the housing market will somewhat even out next year, compared to the craziness we’ve seen in 2021. While no one holds a crystal ball and can see into the future, Fannie Mae is predicting that price appreciation on homes should even out to a somewhat normal level compared to this year.
Mortgage Rates May Rise
Mortgage rates in 2021 were historically-low, allowing many to refinance their properties or have access to buying a home for the first time. Unfortunately, experts are predicting that mortgage rates will go up, and soon. Fannie Mae is predicting that the average 30-year fixed mortgage rate could climb to 4% by the end of 2022. While not historically high, this nominal increase in mortgage rates could deter some buyers, especially younger ones, from purchasing a home.
Inventory is Expected to Remain Low
One of the more frustrating things that buyers experienced in 2021 is a lack of inventory. Homes would be listed and within hours, they were off the market with multiple buyers. There are just simply not enough homes on the market to meet the demand. Experts are predicting that this will continue to be the case in 2022. Supply chain issues are also causing less homes to be built and at a much slower rate.
While no one has a crystal ball and things could change at the drop of a hat, these trends are what many housing experts are predicting for 2022. One thing is for certain though: our team at Hudler Homes will continue to research and monitor the trends to best serve our clients in the near year and every year after it!
If you are looking for a real estate agent who knows the Baltimore area and can help you explore your options, I’d love to meet with you. Reach out to me through my website or give me a call at (302) 545-8569, and follow my blog for more home buying tips!