Both 2020 and 2021 saw whirlwinds of change within the housing market with the latter boasting record high’s and low’s. For many markets, single-family homes rocketed to new highs due to a ripple effect started with material shortages for new construction. Pair that with historically-low interest rates and it’s easy to see why everyone is eager for 2022 to show its hand.
Where 2021 Left Us in the Market
After over a year of fast-paced bidding and multiple offers for every listing, many buyers and sellers alike are hoping for a more relaxed approach in 2022. Rent prices are also rising across the country, prompting families to enter the housing market even with a higher premium on their dream home.
2021 also ended in a backlog of new construction projects and remodel jobs. Many eager homebuyers were pushed out of the market due to the volatility of prices. Now that supply chain issues are happening less often, the inventory of available homes can begin rising once more.
November of 2021 saw the housing market begin to cool off with slower value growth and a more standard flow of sales. Investment properties bought early on in the pandemic began hitting a plateau regarding price increases meaning those with more liquid funds to invest won’t be the top bidder as often.
2022 Predictions That Impact You the Most
Many homebuyers who were waiting out 2021 to see if prices dropped may have to wait longer than expected, depending on how quickly inventory can catch up to demand. Listings will still be scarce so cleaning up your credit and having a sizable down payment is still a good idea to be the ideal bidder.
As more Americans are moving out of the city in order to work remotely from a cheaper suburb, demand for houses is up throughout the country. Affordable neighborhoods are seeing median price increases driven by this demand, but the fire is starting to lose fuel.
Zillow recently updated their 2022 market forecast to reflect developments within the pandemic and housing market worlds. With their final forecast, Zillow is predicting an 11 percent increase in home prices which is a promising sign for buyers when compared to 2021’s ending growth of 19.5 percent.
Daryl Fairweather, Redfin’s Chief Economist, opted to take a deeper look at mortgage rates as well as house prices. 2021 saw 3 percent rates offered on 30-year fixed mortgages, with Daryl expecting 2022 to end at around 3.6 percent. She expects the combination of low interest rates and slow value growth to create a better market for first-time buyers, even if it’s still a seller’s market.
Be Prepared To Make an Offer on Your Dream Home in 2022
It’s never been more important to have the right real estate group on your side before deciding on which home to purchase next. By working with the Curri Kirschner team, you’ll have access to industry insights not found online.
Our local experts are tuned into each neighborhood’s submarket to help you get the most out of every dollar. When you’re ready to get started on your 2022 home buying journey, contact ushere at Curri Kirschner to help make the process as quick and easy as possible.