4 Things To Look For In The Housing Market in 2022

If you have been thinking about buying a new home in 2022, you need to know what some of the leading real estate experts and analysts are predicting!  Keep reading for the 4 biggest housing market takeaways from those predictions!

Mortgage Rates Will Rise 

Right now, mortgage rates are still near historic lows, with some 30-year rates still near 3% and some 15-year rates near 2%.  Don’t expect that to last into the new year, experts say a rise is on the horizon.  Dr. Lawrence Yun, National Association of Realtors (NAR) chief economist, forecasts the 30-year fixed mortgage rate to increase to 3.5% by the end of 2022 as the Fed raises interest rates to control inflation.  Bankrate, also added that “Interest rate hikes, soaring inflation and a smaller bond-buying program are a recipe for higher mortgage rates in 2022.” 

Home Prices Will Rise

Home prices will most likely rise in 2022 but at a slower pace than 2021.  The high-speed pace of housing prices this year was a nearly 20% rise.  This is expected to slow but experts warn that home prices are still likely to go up.The National Association of Realtors estimates housing prices will climb 5.7% in 2022.  This prediction will also vary by market - several markets did reasonably well and this will allow other markets to experience stronger price appreciation in 2022.

Fewer Bidding Wars

Bidding wars... No one likes them when it comes to purchasing your dream home. In 2022, you can expect to see fewer bidding wars on properties but unfortunately you probably won’t be able to avoid them all together.  Limited supply of available homes and a slower pace of homebuilding will keep home prices on the elevated side.  The down side of this is that modest increases in mortgage rates will price more first-time buyers out of the market, according to Greg McBride, chief financial analyst at Bankrate.   Demand will still exceed supply, especially at the price points below $400,000, just not to the extent seen in 2021.  “Homebuyers will continue to be frustrated by the lack of homes available for sale but there will be fewer bidding wars and homes will take a little longer to sell,” says McBride.

Housing Inventory Will Remain Limited

Housing inventory will remain limited, but experts are hoping it won’t be as bad in 2022.  The National Association of Realtors said that the U.S. has under-built housing by at least 5.5 million units. With homes selling so quickly and continuing to do so, housing inventory will remain limited.  However, market experts expect to see the housing market rebound from 2021 lows. Inventory is expected to grow 0.3% on average in 2022 thanks to a rising number of homeowners who say they plan to sell their homes. 

If you are planning on buying or selling in the new year, we are here to help!  We have a team of experts who are ready to help you! 

Planning on buying, you can set up a buyer’s strategy session by calling 417-812-5055! 

Thinking about listing?  You can find out your current home value HERE or give us a call (417-812-5055) and we will get an agent out to your home so you know all the next steps. 

Blog Sources:

Realtor.com

National Association of Realtors (NAR) 

Bankrate