Are you worried about the Real Estate Market Conditions? There’s no doubt that the housing market was harsh on homebuyers in 2021, and things are about to change in 2022.
With increased flexibility with remote work and low mortgage rates, many first-time homebuyers entered the market. However, with plenty of bidding wars, skyrocketing home prices, and limited inventory, suitable housing has become much harder for people to come by.
Experts say the market might normalize in 2022, and competition could begin tapering off.
You should expect the 2022 market to be much better for buyers.
2022 Housing Market Forecast
Rising Mortgage Rates
Experts predict that price gains will level off by next year due to the Real Estate Market Conditions, though they also caution that higher interest rates might result in decreased home buying power.
If the almost record-low rates scared you from buying a home this past year, you might want to consider starting your search back up in 2022.
Potential Improvement
Many experts also think that the market will remain strong in 2022, though they also believe that housing demand and prices will cool off compared to 2021.
There are many signals that the housing market will be more favorable in 2022.
More homes are popping up all over the market, which will inevitably moderate home prices. In turn, the balance between buyers and sellers should normalize by next year.
Demand Will Drive
Thanks to changing demographics and low mortgage rates, demand in the housing market will continue driving forward in 2022. Think of the fact that millennials are beginning to approach the age where they purchase homes for the first time.
The pandemic has also had a substantial consequence on the recent homebuying boom. With so many employers allowing for remote work, many city dwellers are in the process of moving to rural or suburban areas. Places that had lower population densities in the past are now on the rise.
Home Inventory May Remain A Problem
The real estate market is beginning to drift into a normalized state, and with existing homes for sale on the rise with more people moving, supply will have new support.
Experts expect investors to begin selling their rental properties in 2022 as prices increase.
However, while housing inventory may slightly improve next year, many experts say that it will remain an issue for a few years down the line.
If you look at recent studies by Fannie Mae, the growing buyer demand won’t be met with available homes due to the 50% shortage. The housing inventory likely won’t normalize for at least two to three years.
You must also remember that COVID disrupted many supply chains. With so many worker shortages, home builders are faced with many new challenges, which could potentially impact the housing shortage for more than ten years.
Final Thoughts
If you’re planning to purchase a home the following year, you must first think about selling yours. If you want to sell your home as quickly and efficiently as possible, consider getting in touch with us at EZ Max Offer. We’ve helped thousands of homebuyers sell their homes in “as-is” condition in as little as one week.
We look forward to aiding you in taking your next steps in life!
