Here’s where house prices are heading in 2022, experts say
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No doubt about it – the real estate market was hot in 2021. But if you haven’t budged this year and plan to buy or sell – or both – next year, you’ll want to know What to expect.
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As of November 10, the 30-year fixed mortgage rate was 2.98%, which is actually the lowest since September 23. If you are thinking of buying a home, you are almost certainly happy that the rates weren’t exactly skyrocketing – but will it last?
Several real estate experts have looked into the direction they think the real estate market will take in 2022. Here’s what they had to say.
Big cities could explode again
Jonathan Spears, real estate agent and founder of Spears Group, based in Santa Rosa Beach, Fla., Said he believes market gains will continue in the United States into 2022. Specifically, as people continue to shine. feeling more comfortable returning to the big cities, he expects to see the biggest increases in the northeast, southeast and west coast metropolitan markets.
“Although some market prognosticators predict an increase in market values of more than 15%, as the market saw an increase of more than 30% in the previous year, it may in fact appear that the real estate markets have slowed,” did he declare. “Due to the low inventory, we won’t see such high absorption rates just because the inventory is not there. “
Despite this, he anticipates solid growth in the US real estate market in general.
The rate at which home values appreciate may slow
Andrina Valdes, COO of Cornerstone Home Lending, Inc., pointed to statistics from various housing authorities, including Fannie Mae, which predicts a 7.4% home appreciation for 2022, and the National Association of Realtors, which forecasts an appreciation of 2.8% for the existing. homes and 4.4% like new homes – to explain its forecast for house prices in 2022.
“While home values are not expected to depreciate, the rate at which home values are appreciating is expected to slow,” she said.
Mortgage rates could go up, but it could still be a good time for buyers
Valdes said mortgage rates are expected to rise a bit next year, but still remain historically low, while buyer demand is expected to remain strong.
“The market is expected to cool from 2021, but it will still be active,” she said. “It might still be a sellers’ market in many areas, but there will likely be more opportunity and wiggle room for homebuyers. “
Therefore, she said it would always be a good time to buy a house.
“An ‘overpriced’ buyer should be able to find a lot more options,” she said. “Experts also reinforce that the 2022 housing market is not at all likely to collapse – the conditions we are seeing are nothing like the ones that led to the 2008 crisis.”
Danielle Hale, chief economist at Realtor.com, agreed that buyers will likely be able to get more for their money in 2022.
“Asking prices for homes slowed in the second half of 2021, with median listing price growth rising from a peak of 17.2% in April to just 8.6% in October,” she said. “Selling prices have slowed down somewhat, but not yet so quickly. “
However, she said that should change.
“With prices near historic highs and mortgage rates expected to rise, we expect this price slowdown to continue,” she said.
Good news for those on both sides of a real estate transaction, Jason Gelios, a Southeast Michigan real estate agent, said the 2022 housing market will continue to shift to favor homebuyers as prices stabilize , but stay strong.
“Many first-time homebuyers who haven’t been able to compete with stronger homebuyers during the hyperactive sellers market will have a chance to bid on homes in 2022,” he said. . “However, buyers should expect to pay close to asking price as the housing stock will more than likely be lower than it should be.”
Inventory will likely still be low
Bill Samuel, a residential real estate developer and owner of Chicago-based home buying company Blue Ladder Development, agreed that the shortage of homes for sale will likely still be an issue next year.
“Expect a very competitive market through 2022, with multiple offers on most of the properties that interest you,” said Samuel, who is also a Certified Real Estate Broker. The available inventory is still low, but it is slightly higher than it was at the start of 2021. While the market may not be as crazy as it has been in recent months, it is still much more competitive. than before the onset of COVID.
He said the pandemic had improved the housing market by limiting the supply of homes for sale and increasing demand from buyers with low interest rates and stimulus payments.
“Seizures and evictions will resume their normal course from the end of 2021,” he said. “So we will likely see an increase in the supply of homes for sale.”
However, he said that while the supply of available housing will likely increase throughout the next year, it is still expected to be well below pre-pandemic levels.
“In my opinion, the market will continue to remain strong throughout 2022, with supply still weak,” he said. “However, I don’t expect housing demand and the overall market to be as turbulent as in 2021.”
Only time will tell how the real estate market performs in 2022. Hopefully these expert opinions give you some food for thought as you start making plans for the New Year.
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